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The Menlo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor hours . The company based its
The Menlo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor hours. The company based its predetermined overhead rate for the current year on an estimated 12,000 direct labor hours, estimated total fixed overhead cost of $108,000 and a variable manufacturing overhead rate of $6.00 per machine hour. Job K418, which was for 100 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:
Total direct labor hours | 300 | |
Direct materials | $1,100 | |
Direct labor cost | $5,200 |
Required:
- Calculate the estimated total manufacturing overhead for the year.
- Calculate the predetermined overhead rate for the year.
- Calculate the amount of overhead applied to Job K418.
- Calculate the total job cost for Job K418.
- Calculate the unit product cost for Job K418.
- Calculate the selling price for Job K418 if the company marks up its unit product by 30%
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