Solution :
Requirement 1 :
Predetermined Overhead Rate = $ 9 per DLH
Requirement 2 :
Direct Material | $ 38,000 |
Direct Labor | $ 21,000 |
Overhead Applied (280 * $ 9) | $ 2,520 |
Total Manufactuting Cost | $ 61,520 |
Working :
(1) Predetermined Overhead Rate = (Total Fixed Cost / Total Estimated Labor Hour) + Variable OH per hour
= ($ 680,000 / 80,000) + $ 0.50
= $ 8.5 + $ 0.50
= $ 9.00
(2) Job Cost :
Direct Material | $ 38,000 |
Direct Labor | $ 21,000 |
Overhead Applied (280 * $ 9) | $ 2,520 |
Total Manufactuting Cost | $ 61,520 |
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