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SShow the evidence of work Cat Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate
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Cat Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 10: Estimated Actual Manufacturing $40,000 $42.000 overhead costs Direct labour 10.000 hours 19.000 hours hours Job #500 was completed during the year and the following costs had been incurred on that job: Direct materials: $5.000 Direct labour: $1,750 (at $7.00 per direct labour hour) Required: 1. What is the predetermined overhead rate for Cat Company 2. How much overhead would be applied to Job#500? 3. Suppose Job #500 contained 120 units. What would be the total cost for job #500? Please note, when responding to this question in the text box below, ensure you clearly distinguish your answer between parts 1-3 by placing the # prior to entering your response (For example, #1) $0.01 // #2) $1" etc)Step by Step Solution
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