Question

Pinnacle Inc. manufactures shades to customer specifications. You have two cost categories that relate directly to your products: materials and labor. You also have estimated overhead expenses consisting of:

• annual manufacturing supervisor salary of $144,261
• annual manufacturing plant cleanup costs of $134,360
• annual manufacturing plant profit of $135,978

Pinnacle is trying to estimate the cost to do job #454, which includes:

• $11,351 in materials
• 35 labor hours @ $12 per hour

The company also expects to use 20,367 labor hours in the year. If Pinnacle allocates overhead based on $250,000 of estimated direct labor, 

what is the total cost of Job #454? 

*Suggestion, 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.

Question 

Alejandro Associates is an accounting firm that provides audit and tax services to its clients. Each tax return is considered a "job" for the company, just as a manufacturing company considers a customer order as a "job."

Alejandro has direct costs related to the 8405 Tax Return as follows:

• 6 hours of staff labor @ $106 per hour
• 4 hours of assembly labor at $181 per hour
• $56 of materials

In addition, Alejandro Associates estimates its overhead expenses related to preparing tax returns at $58,111 for the year. The company expects to make 10,672 returns in the year. The company also expects to use 54,852 staff hours during the year. If Alejandro allocates overhead to jobs based on staff hours , 

what is the total cost of tax return 8405?