Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Product Cost Sadaf Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Estimated Direct labor-hours for

image text in transcribed
Product Cost Sadaf Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Estimated Direct labor-hours for year of production Actual Direct labor-hours for year of production Total estimated Fixed manufacturing overhead coat Total Actual Tised manufacturing overhead coat Estimated Variable manufacturing overhead cont per direct labor hour Actual Variable manufacturing overhead coat per direct labor-hour 70,000 65.000 $784,000 6770,000 4.00 $ 3.00 During the year, Job 40A was started and completed. The following information is available with respect to this job: Direct materiale 175 Direct labor cost 225 Direct labor-hours 5 Required: 1. Assume that Sadaf used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 40A c. If Sadaf uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 40A? (Round your intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rate" answers to 2 decimal places and all other answers to the nearest whole dollar.) per DLh 1. Direct labor-hours: a. Predetermined overhead rate b. Total manufacturing cost of Job 40A c. Selling price fe

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions