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MakcuM [25]
3 years ago
12

Heating​ & cooling installs and services commercial heating and cooling systems. elklandelkland uses job costing to calculat

e the cost of its jobs. overhead is allocated to each job based on the number of direct labor hours spent on that job. at the beginning of the current​ year, elklandelkland estimated that its overhead for the coming year would be $ 61 comma 500$61,500. it also anticipated using 4 comma 1004,100 direct labor hours for the year.

Business
1 answer:
Artyom0805 [142]3 years ago
7 0

Answer:

  • The predetermined overhead rate is calculated by dividing total estimated overhead costs by total estimated direct labor hours = $61,500 / 4,100 labor hours = $15 per direct labor hours
  • total overhead rate for job 102 = 72 direct labor hours x $15 per direct labor hours = $1,080
  • total overhead rate for job 101 = 155 direct labor hours x $15 per direct labor hours = $2,325.

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