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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? | |||||||||||
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