Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sofa Gomez runs a mobile pet grooming service. She charges $30 direct labor per grooming hour. She applies overhead to jobs on the basis

image

Sofa Gomez runs a mobile pet grooming service. She charges $30 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 930 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 4,420 Van insurance expense 1,460 Indirect materials $ 1,130 Tool depreciation 730 Other overhead $ 480 1,080 1. Compute the predetermined overhead rate using estimated grooming hours. 2. Sofia has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 3. If Sofa targets a markup of 20% on the total cost for each job, what price should she quote for the job in part 2? 1. Predetermined overhead rate 2. Total job cost 3. Price quote + Check my

Step by Step Solution

3.43 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

1 Predetermined overhead rate The predetermined overhead rate is calculated by dividing the estimate... 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

Recommended Textbook for

Fundamental Accounting Principles

Authors: John J Wild, Ken Shaw

25th Edition

1260247988, 978-1260247985

More Books

Students also viewed these Accounting questions