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The overhead cost allocated is for direct labour hours. The question asks to find overhead cost allocated to equipment hours instead. APPENDIX V CURRENT JOB
The overhead cost allocated is for direct labour hours.
The question asks to find overhead cost allocated to equipment hours instead.
APPENDIX V CURRENT JOB INFORMATION Fire Restoration Flood Restoration Other Totals Comm. Res. Comm. Res. Comm. Res. Comm. Res. Revenue $224,640 $44,096 $237,005 $46,515 $45,650 $9,047 $507,295 $99,658 Overhead cost allocated $ 45,000 $ 9,000 $ 33,000 $ 6,600 $ 4,000 $ 800 $ 82,000 $16,400 Direct labour cost $164,000 $32,800 $ 80,000 $16,000 $ 76,000 $15,200 $ 8,000 $1,600 2,250 450 1,650 330 200 40 Number of labour hours 4,100 820 Direct materials $100,000 $20,000 $ 97,500 $19,500 $27,500 $5,500 $225,000 $45,000 Equipment hours used 350 70 600 120 75 15 1,025 205 Total cost $225,000 $45,000 $206,500 $41,300 $39,500 $7,900 $471,000 $94,200 BIG benchmark total cost $220,000 $44,000 $210,000 $42,000 $42,500 $8,500 Note: All figures are per jobStep by Step Solution
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