Question
Wynn Landscaping has two pools of indirect costs: --Landscaping overhead --Administrative overhead Wynn allocates Landscaping overhead costs to its landscaping jobs based on the cost
Wynn Landscaping has two pools of indirect costs: --Landscaping overhead --Administrative overhead Wynn allocates Landscaping overhead costs to its landscaping jobs based on the cost of material used on the job. In Year7, Wynn determined an estimated Landscaping overhead rate of $0.62 per dollar cost of materials. Wynn allocates Administrative overhead costs to its landscaping jobs based on direct labor hours. In Year7, Wynn determined an estimated Landscaping overhead rate of $9 per direct labor hour. Landscape order #602 used the following resources: Cost of materials: $42000 Cost of direct labor: $2520; 90 direct labor hours paid to employees at $28 per hour Compute the total cost of order #602, including the overhead.
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