Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead costs at $1,203,750, and they estimated total direct labor costs at $1,500,000. The administration and selling overheads are to be absorbed in each job cost at 33%% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for Job # B4000. Data for the job are as follows: Direct materials cost $159,500 Direct labour cost $240,000 400 hours $12,850 Direct labour hours Special Design Cost Distribution quote from haulage company $17,900 a) Compute Everlast Manufacturing Company predetermined manufacturing overhead rate for 2020. b) Determine how much manufacturing overhead was allocated to Job #B4000? c) Calculate the total cost & quotation price of Job #B4000, given that a margin of 20% is applied. d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?
Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead costs at $1,203,750, and they estimated total direct labor costs at $1,500,000. The administration and selling overheads are to be absorbed in each job cost at 33%% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for Job # B4000. Data for the job are as follows: Direct materials cost $159,500 Direct labour cost $240,000 400 hours $12,850 Direct labour hours Special Design Cost Distribution quote from haulage company $17,900 a) Compute Everlast Manufacturing Company predetermined manufacturing overhead rate for 2020. b) Determine how much manufacturing overhead was allocated to Job #B4000? c) Calculate the total cost & quotation price of Job #B4000, given that a margin of 20% is applied. d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?
Cornerstones of Cost Management (Cornerstones Series)
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Can you help with c and d. And please show working
![Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a
percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead
costs at $1,203,750, and they estimated total direct labor costs at $1,500,00o.
The administration and selling overheads are to be absorbed in each job cost at 33%% of prime cost.
Distribution cost should be added to each job according to quotes from outside carriage companies.
The company wishes to quote for Job # B4000. Data for the job are as follows:
Direct materials cost
$159,500
Direct labour cost
$240,000
400 hours
$12,850
Direct labour hours
Special Design Cost
Distribution quote from haulage company
$17,900
a) Compute Everlast Manufacturing Company predetermined manufacturing overhead rate for 2020.
b) Determine how much manufacturing overhead was allocated to Job #B4000?
c) Calculate the total cost & quotation price of Job #B4000, given that a margin of 20% is applied.
d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F30e62c65-24a7-4b98-a69d-6f93d49d4efe%2F0bd759e9-a82f-4969-86fe-81c729495b0e%2F0cdg2da_processed.png&w=3840&q=75)
Transcribed Image Text:Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a
percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead
costs at $1,203,750, and they estimated total direct labor costs at $1,500,00o.
The administration and selling overheads are to be absorbed in each job cost at 33%% of prime cost.
Distribution cost should be added to each job according to quotes from outside carriage companies.
The company wishes to quote for Job # B4000. Data for the job are as follows:
Direct materials cost
$159,500
Direct labour cost
$240,000
400 hours
$12,850
Direct labour hours
Special Design Cost
Distribution quote from haulage company
$17,900
a) Compute Everlast Manufacturing Company predetermined manufacturing overhead rate for 2020.
b) Determine how much manufacturing overhead was allocated to Job #B4000?
c) Calculate the total cost & quotation price of Job #B4000, given that a margin of 20% is applied.
d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?
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