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Outdoor Industries manufactures custom-designed playground equipment for schools and city parks. Outdoor expected to incur $533,000 of manufacturing overhead cost, 41,000 of direct labor
Outdoor Industries manufactures custom-designed playground equipment for schools and city parks. Outdoor expected to incur $533,000 of manufacturing overhead cost, 41,000 of direct labor hours, and $1,476,000 of direct labor cost during the year (the cost of direct labor is $36 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During October, Outdoor completed Job 304. The job used 180 direct labor hours and required $13,300 of direct materials. The City of Northville has contracted to purchase the playground equipment at a price of 27% over manufacturing cost. Read the requirements Requirement 1. Calculate the manufacturing cost of Job 304. First identify the formula, then calculate the predetermined overhead rate. Predetermined overhead rate per hour
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