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Wittaler [7]
3 years ago
9

Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of ea

ch bike. Estimated costs and expenses for the coming year follow: Bike parts $ 349,800 Factory machinery depreciation 56,500 Factory supervisor salaries 140,000 Factory direct labor 240,192 Factory supplies 46,400 Factory property tax 27,750 Advertising cost 27,500 Administrative salaries 50,500 Administrative-related depreciation 21,200 Total expected costs $ 959,842 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.51 per hour. 2. Determine the amount of applied overhead if 18,000 actual hours are worked in the upcoming year.
Business
1 answer:
Westkost [7]3 years ago
7 0

Answer:

See answers below

Explanation:

1 The predetermined overhead rate

= Cost of manufacturing overhead / Cost driver.

Where cost driver

= labor cost / labor rate

= $240,192 / $12.51

= 19,200 hours

Expected overhead

= depreciation + supervisor + supplies + property tax

= 56,500 + 140,000 + 46,400 + 27,750

Total overhead = 270,650

Overhead rate = 270,650 / 19,200

= 14.10 per hour

2. The amount t of applied overhead for of 18,500 actual hours were worked on

= 18,500 hours × $14.10

= $260,850

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Which situation best illustrates the effects of inflation?
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4 0
3 years ago
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000
Sedaia [141]

Answer:

A) $48,000

Explanation:

Assembly                                   Painting                             Total

150 employees                          100 employees                 250 employees

44,000 square feet                   36,000 square feet          80,000 sq. feet

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Maintenance expenses                                                        $100,000

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7 0
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