Cooper Inc. manufactures t-shirts and uses job costing to calculate the cost of its jobs with direct labour hours as its
Posted: Sun Jun 05, 2022 8:14 pm
Cooper Inc. manufactures t-shirts and uses job costing to
calculate the cost of its jobs with direct labour hours as its
manufacturing overhead allocation base. At the beginning of current
year, the company estimated the following:
Estimated overhead costs $562,500
Estimated direct labour hours 25,000
The company pays its employees an average amount per direct
labour hour as follows:
Average pay per DLH $16.00
The company just finished Job 350 and have the following
information from the job:
Direct materials used $19,200
Direct labour hours used 160
Use the above information to answer the following questions.
What is the company's predetermined manufacturing overhead rate
per direct labour hour?
What is the total manufacturing overhead allocated to Job
350?
What is the total cost of Job 350?
If management want to earn a profit that equals 25% of the job's
costs, how much would the company charge their customer for this
job?
calculate the cost of its jobs with direct labour hours as its
manufacturing overhead allocation base. At the beginning of current
year, the company estimated the following:
Estimated overhead costs $562,500
Estimated direct labour hours 25,000
The company pays its employees an average amount per direct
labour hour as follows:
Average pay per DLH $16.00
The company just finished Job 350 and have the following
information from the job:
Direct materials used $19,200
Direct labour hours used 160
Use the above information to answer the following questions.
What is the company's predetermined manufacturing overhead rate
per direct labour hour?
What is the total manufacturing overhead allocated to Job
350?
What is the total cost of Job 350?
If management want to earn a profit that equals 25% of the job's
costs, how much would the company charge their customer for this
job?