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What-if? Consider the following after you have completed the requirements of E2-12. 1. Suppose management provides a revised manufacturing overhead estimate of $937,500. What will
What-if? Consider the following after you have completed the requirements of E2-12. 1. Suppose management provides a revised manufacturing overhead estimate of $937,500. What will be the revised cost of job 253 using direct labor cost is as the allocation base? $937,500 = per direct labor hour Direct materials $ 125,000 Direct labor 90,000 Manufacturing overhead 722,500 Total $ 937,500 2. What effect will the overhead revision in part 1 have on profit of job 253?
| What-if? | |||||||||||
| Consider the following after you have completed the requirements of E2-12. | |||||||||||
| 1. Suppose management provides a revised manufacturing overhead estimate of $937,500. What will be the revised cost of job 253 using direct labor cost is as the allocation base? | |||||||||||
| $937,500 | = | per | direct labor hour | ||||||||
| Direct materials | $ 125,000 | ||||||||||
| Direct labor | 90,000 | ||||||||||
| Manufacturing overhead | 722,500 | ||||||||||
| Total | $ 937,500 | ||||||||||
| 2. What effect will the overhead revision in part 1 have on profit of job 253? | |||||||||||
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
