Question
Patchwork Inc. manufactures quilts to client specifications. It has two cost categories that are directly traced to its products: materials and labor. It also has
Patchwork Inc. manufactures quilts to client specifications. It has two cost categories that are directly traced to its products: materials and labor. It also has estimated overhead that consists of:
annual manufacturing supervisor's salary of $137,582
annual manufacturing plant cleaning costs of $117,693
annual manufacturing plant utilities of $137,447
annual marketing costs of $39,405
Patchwork is trying to calculate the cost of making Job #454, which includes:
$11,462 in materials
20 hours of labor @ $12 per hour
The company also expects to use 24,465 labor hours for the year. If Patchwork allocates overhead based on $250,000 estimated direct labor dollars, what is the total cost of Job #454? *Hint, make a job order cost sheet for Job 454. It should include materials, labor, and overhead. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar.
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