PG Industries manufactures custom-designed playground equipment for schools and city parks. PG expected to incur $784,700 of manufacturing overhead cost, 41,300 of direct labor hours, and $1,239,000 of direct labor cost during the year (the cost of direct labor is $30 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During June, PG completed Job 308. The job used 180 direct labor hours and required $15,100 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 26% over manufacturing cost. Read the requirements. Requirement 1. Calculate the manufacturing cost of Job 308. First identify the formula, then calculate the predetermined overhead rate. Calculate the manufacturing cost of Job 308. = Predetermined overhead rate per hour Total job cost Requirement 2. How much will the City of Adams pay for this playground equipment? (Round your answers to the nearest whole number.) Total price to charge
PG Industries manufactures custom-designed playground equipment for schools and city parks. PG expected to incur $784,700 of manufacturing overhead cost, 41,300 of direct labor hours, and $1,239,000 of direct labor cost during the year (the cost of direct labor is $30 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During June, PG completed Job 308. The job used 180 direct labor hours and required $15,100 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 26% over manufacturing cost. Read the requirements. Requirement 1. Calculate the manufacturing cost of Job 308. First identify the formula, then calculate the predetermined overhead rate. Calculate the manufacturing cost of Job 308. = Predetermined overhead rate per hour Total job cost Requirement 2. How much will the City of Adams pay for this playground equipment? (Round your answers to the nearest whole number.) Total price to charge
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
Related questions
Question
Q25. 1. Calculate the manufacturing cost of Job 308.
2. How much will the City of Adams Adamspay for this playground equipment?
PG Industries manufactures custom-designed playground equipment for schools and city parks. PG expected to incur $784,700 of manufacturing overhead cost, 41,300 direct labor hours, and $1,239,000 of direct labor cost during the year (the cost of direct labor is $30 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During June, PG completed Job 308. The job used 180 direct labor hours and required $15,100 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 26% over manufacturing cost.
PG Industries manufactures custom-designed playground equipment for schools and city parks. PG expected to incur $784,700 of manufacturing overhead cost, 41,300 direct labor hours, and $1,239,000 of direct labor cost during the year (the cost of direct labor is $30 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During June, PG completed Job 308. The job used 180 direct labor hours and required $15,100 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 26% over manufacturing cost.
Transcribed Image Text:PG Industries manufactures custom-designed playground equipment for schools and city parks. PG expected to incur $784,700 of manufacturing overhead cost, 41,300 of direct labor hours, and $1,239,000 of direct labor cost during the year (the cost of direct labor is $30
per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During June, PG completed Job 308. The job used 180 direct labor hours and required $15,100 of direct materials. The City of Adams has contracted to purchase the playground
equipment at a price of 26% over manufacturing cost.
Read the requirements.
Requirement 1. Calculate the manufacturing cost of Job 308.
First identify the formula, then calculate the predetermined overhead rate.
Calculate the manufacturing cost of Job 308.
= Predetermined overhead rate
per hour
Total job cost
Requirement 2. How much will the City of Adams pay for this playground equipment? (Round your answers to the nearest whole number.)
Total price to charge
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