Phoenix Manufacturing Inc. uses a job order costing system and has set a pre-determined overhead rate of 150% of direct labor cost. Job # 478 was charged with direct materials of $24,000 and with overhead of $36,000. Assume Phoenix manufacturing prices its jobs at 50% above manufacturing cost. Calculate the price charged to the customer for Job #478.

Phoenix Manufacturing Inc. uses a job order costing system and has set a pre-determined overhead rate of 150% of direct labor cost. Job # 478 was charged with direct materials of $24,000 and with overhead of $36,000. Assume Phoenix manufacturing prices its jobs at 50% above manufacturing cost. Calculate the price charged to the customer for Job #478.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 10E: Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair...

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Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: The average shop direct labor rate is 37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.
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