Homework Answers
Manufacturing overhead rate = Manufacturing overhead/Direct labor hours
= 533,000/41,000
= $13 per direct labor hour
Manufacturing cost of job 309
| Direct materials | 15,400 |
| Direct labor (165 x 20) | 3,300 |
| Manufacturing overhead (165 x 13) | 2,145 |
| Manufacturing cost | 20,845 |
| Mark up (20,845 x 25%) | 5,211 |
| Price to be charged | $26,056 |
Hence, city of Adams will pay $26,056
Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubts. Thanks.
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E3-19A (similar to) Question Help * PG Industries manufactures custom-designed playground equipment for schools and city...
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1. Calculate the manufacturing cost of Job
302.
2. How much will the City of Northville pay for this
playground​ equipment?
All Wood Industries manufactures custom-designed playground equipment for schools and city parks. All Wood expected to incur $627,000 of manufacturing overhead cost, 41,800 of direct labor hours, and $836,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During...
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