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PG Industries manufactures custom-designed playground equipment for schools and city parks. PG expected to incur $863,100 of manufacturing overhead cost, 41,100 of direct labor hours,
PG Industries manufactures custom-designed playground equipment for schools and city parks. PG expected to incur $863,100 of manufacturing overhead cost, 41,100 of direct labor hours, and $1,561,800 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During June, PG completed Job 308. The job used 160 direct labor hours and required $13,000 of direct materials. The City of Northville has contracted to purchase the playground equipment at a price of 26% over manufacturing cost. Read the requirements. Requirement 1. Calculate the manufacturing cost of Job 308. First identify the formula, then calculate the predetermined overhead rate. Calculate the manufacturing cost of Job 308
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