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Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $750,600 of manufacturing overhead cost, 41,700 of direct labor hours,
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $750,600 of manufacturing overhead cost, 41,700 of direct labor hours, and $1,501,200 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 March, Playtime completed Job 307. The job used 200 direct labor hours and required $13,600 of direct materials. The City of Eastbridge has contracted to purchase the playground equipment at a price of 22% over manufacturing cost. Read the requirements. Requirement 1. Calculate the manufacturing cost of Job 307. First identify the formula, then calculate the predetermined overhead rate. = Predetermined overhead rate -D per hour i Requirements 1. Calculate the manufacturing cost of Job 307. 2. How much will the City of Eastbridge pay for this playground equipment? Print Print Done Done
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