The Make-It-Right Company manufactures special wheelchairs for handicapped athletes. The company uses a job order costing system.
Question:
The Make-It-Right Company manufactures special wheelchairs for handicapped athletes. The company uses a job order costing system. Partial data for a particular job include:
Direct materials $\$ 450$
Direct labor Manufacturing overhead Total cost The company allocates manufacturing overhead on the basis of direct labor hours. The estimated total manufacturing costs for the year are $\$ 750,000$ and the total estimated direct labor hours are 150,000 . Factory workers are paid $\$ 15$ per hour.
1. Compute the predetermined manufacturing overhead rate.
2. What is the allocated manufacturing overhead cost and the total cost of the above referenced job?
Step by Step Answer:
Survey Of Accounting
ISBN: 9780538846172
1st Edition
Authors: James D. Stice, W. Steve Albrecht, Earl Kay Stice, K. Fred Skousen