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Sticklers Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on direct labour costs. The hourly wage of one
Sticklers Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on direct labour costs. The hourly wage of one employee is $30/hour. At the beginning of the year, the company expected to incur the following: Depreciation on manufacturing plant $245,300 Property taxes on plant $9,200 Insurance on headquarter building $11,000 Utilities on headquarter building $12,000 Marketing expense $8,000 Plant janitors wages $5,500 Direct labour hours 40,000 hours Job# 471 uses the following items: Direct materials $11,000 Direct labour hours 100 hours Required: 1. Compute Sticklers' predetermined overhead rate. 2. How much manufacturing overhead is allocated to job #471. 3. What's the total cost of job #471?
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