Question

Read each question carefully! Record your answers in the spaces provided. Show calculations where necessary. Good Luck! Problem 1: Job Costing (20 points) Porter Company uses job-costing to estimate their costs and also set their prices. The following information is available: Labor, Material & over Estimated Total Indirect Costs Estimated Total Machine Hours Estimated Total Direct Labor Hours Estimated Total Direct Labor Costs $600,000 10,000 20.000 $75,000 Porter is bidding on a job and has the following estimated information relating to that specific job: Rate ove ned Direct Materials Needed Direct Labor Costs Direct Labor Hours Needed Machine Hours Needed $9,000 $1,000 225 100 The company uses direct labor hours hours to allocate indirect costs. Required 2. 3. Calculate the overhead rate used by Porter Calculate the amount of indirect costs allocated to this job Calculate the total cost of the job Calculate the selling price of the job assuming that Porter adds 10% to the total cost of the job. Answer Question Overhead Rate Allocated Overhead to Job Total Costs of Job Selling Price of Job

Please show calculations on excel spreadsheet. Thank you

Answer 1

Calculate following

Question	Answer
Overhead rate (600000/20000)	30 per labor hour
Allocated overhead to Job	225*30 = 6750
Total Costs to Job	9000+1000+6750 = 16750
Selling price	16750*1.1 = 18425