Park Industries manufactures custom-designed playground equipment for schools and city parks. Park expected to incur S784,700of manufacturing overhead cost, 41,300 of direct labor hours, and S1,073,800 of direct labor cost during the year (the cost of directlabor is $26 per hour). The company allocates manufacturing overhead on the basis of direct labor nours. During August, Parkcompleted Job 306. The job used 165 direct labor hours and required S12,700 of direct materials. The City of Jonestown hascontracted to purchase the playground equipment at a price of 27% over manufacturing cost. Reac the requirements RequirementFirst identify the formulathen calculate the predetermined overhead rate. Estimatedyearly overhead costs Estimated yearly direct labor hours - Predetermined overhead rate per hour

Name: Park Industries manufactures custom-designed playground equipment for
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Description: Park Industries manufactures custom-designed playground equipment for schools and city parks. Park expected to incur S784,700of manufacturing overhead cost, 41,300 of direct labor hours, and S1,073,800 of direct labor cost during the year (the cost

Predetermined OH Rate is the one that is calculated to apply the Mfg. OH incurred to the jobs or…

Answered: Park Industries manufactures…

Business

Accounting

Park Industries manufactures custom-designed playground equipment for sc of manufacturing overhead cost 41,300 of direct labor hours, and $1,073,800

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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