3⅓% 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
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
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
Direct labour hours 400 hours
Special Design Cost $12,850
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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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 33⅓% 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
Direct labour hours 400 hours
Special Design Cost $12,850
Distribution quote from haulage company $17,900
d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?
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