Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: Direct materials cost $169,450 Direct labour cost $230,000 Direct labour hours 400 hours Special Design Cost Distribution quote from haulage company $12,300 $17,930 Units of product produced 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W50o? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied. d) How much was the production cost per unit (cost per crate) of finished product?
Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: Direct materials cost $169,450 Direct labour cost $230,000 Direct labour hours 400 hours Special Design Cost Distribution quote from haulage company $12,300 $17,930 Units of product produced 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W50o? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied. d) How much was the production cost per unit (cost per crate) of finished product?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please help with parts c & d. Thank you
![Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a
percentage of direct labor cost.
overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000.
At the beginning of 2018, they estimated total manufacturing
The administration and selling overheads are to be absorbed in each job cost at 15% of production
cost. Distribution cost should be added to each job according to quotes from outside carriage
companies.
The company wishes to quote for job # W500. Data for the job are as follows:
Direct materials cost
$169,450
Direct labour cost
$230,000
Direct labour hours
400 hours
Special Design Cost
Distribution quote from haulage company
Units of product produced
$12,300
$17,930
250 crates
a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for
2018.
b) How much manufacturing overhead was allocated to Job #W500?
c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied.
d) How much was the production cost per unit (cost per crate) of finished product?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8968595b-146d-47b0-bcab-b6cf5ee01065%2F43f66389-4232-4111-bc43-6dd0e55a3951%2Fmtgnt6_processed.png&w=3840&q=75)
Transcribed Image Text:Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a
percentage of direct labor cost.
overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000.
At the beginning of 2018, they estimated total manufacturing
The administration and selling overheads are to be absorbed in each job cost at 15% of production
cost. Distribution cost should be added to each job according to quotes from outside carriage
companies.
The company wishes to quote for job # W500. Data for the job are as follows:
Direct materials cost
$169,450
Direct labour cost
$230,000
Direct labour hours
400 hours
Special Design Cost
Distribution quote from haulage company
Units of product produced
$12,300
$17,930
250 crates
a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for
2018.
b) How much manufacturing overhead was allocated to Job #W500?
c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied.
d) How much was the production cost per unit (cost per crate) of finished product?
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