Answer:
Explanation:
GIving the following information:
The company applies all of its overhead costs to jobs based on direct labor-hours.
At the beginning of estimates:
Labor-hours required to support estimated output 30,000.
Fixed overhead costs $405,000.
Variable overhead cost per direct labor-hour $1.00.
A) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base=
Estimated manufacturing overhead rate= (405000/30000)+1= $14.5 per direct labour hour
B)
The following information was available concerning his job:
Direct materials $619
Direct labor $113
Cost Direct labor-hours used 4
MOH= 4* 14.5= $58
Total cost job= 619 + 113 + 58= $790
C) Selling price markup percentage of 40%.
Selling price= 790*1.4= $1,106
