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I have the following information: direct materials $250 and total manufacturing cost $700.  Overhead applied to jobs at a rate of 200% of direct labor cost.  This is for Chapter 2 job costing in managerial accounting.  I am supposed to figure out conversion cost, direct labor cost, and manufacturing overhead.    I know the formula for conversion cost= direct labor + manufacturing OH Prime cost= direct labor + direct materials How do I figure out direct labor cost with the given information?  The learning objective states calcualte predetermined overhead rate, but I do not have estimated manufacturing cost and estimated labor.  Can you please help? Thanks, Erica Gordon

I have the following information: direct materials $250 and total manufacturing cost $700.  Overhead applied to jobs at a rate of 200% of direct labor cost.  This is for Chapter 2 job costing in managerial accounting.  I am supposed to figure out conversion cost, direct labor cost, and manufacturing overhead.    I know the formula for conversion cost= direct labor + manufacturing OH Prime cost= direct labor + direct materials How do I figure out direct labor cost with the given information?  The learning objective states calcualte predetermined overhead rate, but I do not have estimated manufacturing cost and estimated labor.  Can you please help? Thanks, Erica Gordon

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I have the following information: direct materials $250 and total manufacturing cost $700.  Overhead applied to jobs at a rate of 200% of direct labor cost.  This is for Chapter 2 job costing in managerial accounting.  I am supposed to figure out conversion cost, direct labor cost, and manufacturing overhead. 

 

I know the formula for conversion cost= direct labor + manufacturing OH

Prime cost= direct labor + direct materials

How do I figure out direct labor cost with the given information?  The learning objective states calcualte predetermined overhead rate, but I do not have estimated manufacturing cost and estimated labor.  Can you please help?

Thanks,

Erica Gordon

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