Requirements:

1. Calculate the manufacturing cost of Job 302.

2. How much will the City of Northville pay for this playground equipment?

All Wood Industries manufactures custom-designed playground equipment for schools and city parks. All Wood expected to incur $627,000 of manufacturing overhead cost, 41,800 of direct labor hours, and $836,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During January, All Wood completed Job 302. The job used 195 direct labor hours and required $15,400 of direct materials. The City of Northville has contracted to purchase the playground equipment at a price of 24% over manufacturing cost. Read the requirements. Requirement 1. Calculate the manufacturing cost of Job 302. First identify the formula, then calculate the predetermined overhead rate. Predetermined overhead rate per hour