Question
Red Cat Auto Repairs uses a job-order costing system. The company applies all of its overhead costs to jobs based on direct labor hours. At
Red Cat Auto Repairs uses a job-order costing system. The company applies all of its overhead costs to jobs based on direct labor hours. At the beginning of the year, it made the following estimates: Estimated Data Mechanical Repair Body Repair Total Direct Labor Hours 40,000 25,000 65,000 Fixed OH Cost $591,000 $155,000 $746,000 Variable OH/DLH $4 $7 $11 Job C34 Total Direct Material $800 $1,700 $2,500 Direct Labor Cost $1,900 $2,500 $4,400 Direct Labor Hrs Used 11 16 27 What is the selling price for Job C34 using multiple department predetermined overhead rate? Selling Price = 68% markup.
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