70.2K

Verified Solution

Link Copied!

DansvilleDansville

Restaurant Supply manufactures commercial stoves and ovens for restaurants and bakeries. The company uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base. At the beginning of the current year,

DansvilleDansville

estimated that its overhead for the coming year would be

$300,000.

It also anticipated using

25,000

direct labor hours for the year.

DansvilleDansville

pays its employees an average of

$ 20

per direct labor hour.

DansvilleDansville

just finished Job 371, which consisted of two large ovens for a regional bakery. The costs for Job 371 were as follows:

Job 371

Direct materials used. . . . . . .

$16,000

Direct labor hours used. . . .

110

.Requirement 1. What is

DansvilleDansville's

predetermined manufacturing overhead rate based on direct labor cost?Determine the formula to calculate

DansvilleDansville's

predetermined overhead rate based on direct labor costs, then calculate the rate.

/

=

Predetermined overhead rate

/

=

% of DL cost

Requirement 2. Calculate the manufacturing overhead to be allocated based on direct labor cost to Job 371.

Determine the formula to calculate the overhead to be allocated based on direct labor to Job 371, then calculate the manufacturing overhead allocated. (Round your answer to the nearest whole dollar.)

						Manufacturing
		x			=	overhead allocated
		x		%	=

Requirement 3. What is the total cost of Job 371?

		Job 371
Total job cost

Choose from any list or enter any number in the input fields and then continue to the next question.

Answer & Explanation Solved by verified expert

See Answer