Question
What is d? Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained
What is d? Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately 99,000 direct labor hours during the year. The following estimates are made in setting the predetermined overhead rate for the year:
Overhead costs other than breakage | $653,840 | |
Estimated cost of scrap | $55,440 | |
Estimated sales value of scrap | (16,280) | 39,160 |
Total estimated overhead | $693,000 |
One job that Renaissance Creations completed during the year was a stained glass window of the Pierce family crest that took 275 hours, and direct labor is invoiced at $20 per hour. Total direct material cost for the job was $1,958. Scrap that was generated from this job was sold for $205.
d. Assume instead that only certain jobs generate scrap. What was the cost of the Pierce stained glass window? Note: Round your final answer to the nearest whole dollarStep by Step Solution
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