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Wheelers Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and
Wheelers Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow:
Bike parts$ 357,800Factory machinery depreciation57,000Factory supervisor salaries138,500Factory direct labor221,526Factory supplies38,900Factory property tax30,750Advertising cost27,500Administrative salaries50,500Administrative-related depreciation20,700Total expected costs$ 943,176Required:
- Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour.
- Determine the amount of applied overhead if 18,500 actual hours are worked in the upcoming year.
Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour.
Note: Round your answer to 2 decimal places.
1Predetermined Overhead Rate____per DL Hour2. Determine the amount of applied overhead if 18,500 actual hours are worked in the upcoming year.
Applied over head______
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