Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $ 342,800 |
---|---|
Factory machinery depreciation | 57,500 |
Factory supervisor salaries | 140,500 |
Factory direct labor | 202,901 |
Factory supplies | 44,900 |
Factory property tax | 29,250 |
Advertising cost | 22,500 |
Administrative salaries | 46,500 |
Administrative-related depreciation | 20,700 |
Total expected costs | $ 907,551 |
Required:
- Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.21 per hour.
- Determine the amount of applied overhead if 17,600 actual hours are worked in the upcoming year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started