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?