Question
Sweet Co. uses budgeted overhead rates to apply overhead to individual jobs. They use a system based on direct labor hours. Last year, the company
Sweet Co. uses budgeted overhead rates to apply overhead to individual jobs. They use a system based on direct labor hours. Last year, the company made the following estimates for this year. Direct labor costs $45,000,000 Factory overhead costs $8,000,000 Direct Labor Hours 80,000 Machine Hours 105,000 (a) What is the predetermined overhead rate (per direct labor hour) for the company? (b) Given that Job #34567 had the following: Direct material costs were $450,000; Direct labor costs were $375,000; Direct labor hours 20,000; and Machine hours were 28,000. What is the total cost of Job #34567?
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