Question
Sweet Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Sweet estimated that the
Sweet Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Sweet estimated that the total overhead costs would be $ 73,200 and that the total labour hours would be 2,440. At the end of the year, Sweet obtained the actual overhead costs from the ledger and found that the shop had incurred $ 66,808 and had worked 2,386 labour hours.
Compute the predetermined (budgeted) overhead rate.
Overhead Rate | $ |
Compute the overhead amount that was applied for the year. Was overhead underapplied or overapplied?
Applied Overhead Amount | $ Choose your answer here: Underapplied/Overapplied/Nor Overapplied/Neither Underapplied |
Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation | Debit | Credit |
A customer brings her car to be fixed. She wants an estimate before she decides to have her car fixed. Sweet estimates that the parts would cost $ 236, labour costs $ 42/hour for 2.00 hours. What is the cost of this job?
Total Cost | $ |
To provide a quote to a customer, Sweet adds a 42% mark up on the full costs. What is the quote for the job in (D)? (Round answer to 0 decimal places, e.g. 5,275.)
Quote | $ |
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