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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 Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $ 354,800 59,500 143,000 217,931 38,900 34,250 23,500 52,000 23,700 $947,581 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour. 2. Determine the amount of applied overhead if 18,900 actual hours are worked in the upcoming year. Required 1 Required 2 Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour. (Round your answer to 2 decimal places.) Predetermined Overhead Rate per DL Hour Required 1 Required 2 Determine the amount of applied overhead if 18,900 actual hours are worked in the upcoming year. (Round your intermediate calculations to 2 decimals. Round your final answer to the nearest whole dollar.) Applied OverheadStep by Step Solution
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