Question
Pinnacle Inc. manufactures curtains to client specifications. It has two cost categories that are directly traced to its products: materials and labor. It also has
Pinnacle Inc. manufactures curtains 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 $187,048
- annual manufacturing plant cleaning costs of $144,006
- annual manufacturing plant utilities of $138,028
Pinnacle is trying to calculate the cost of making Job #454, which includes:
- $11,209 in materials
- 34 hours of labor @ $12 per hour
The company also expects to use 20,327 labor hours for the year. If Pinnacle allocates overhead based on $250,000 estimated direct labor dollars, what is the total cost ofJob #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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