Discussion Question _ Job Costing II Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they...


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Discussion Question _ Job Costing II<br>Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a<br>percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead<br>costs at $1,203,750, and they estimated total direct labor costs at $1,500,000.<br>The administration and selling overheads are to be absorbed in each job cost at 33½% of prime cost.<br>Distribution cost should be added to each job according to quotes from outside carriage companies.<br>The<br>company<br>wishes to quote for Job # B400o. Data for the job are as follows:<br>Direct materials cost<br>$159,500<br>Direct labour cost<br>$240,000<br>Direct labour hours<br>400 hours<br>Special Design Cost<br>$12,850<br>Distribution<br>quote<br>from haulage company<br>$17,900<br>a) Compute Everlast Manufacturing Company predetermined manufacturing overhead rate for 2020.<br>b) Determine how much manufacturing overhead was allocated to Job #B40o0?<br>c) Calculate the total cost & quotation price of Job #B4000, given that a margin of 20% is applied.<br>d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?<br>

Extracted text: Discussion Question _ Job Costing II 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 33½% 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 # B400o. 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 #B40o0? 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?

Jun 11, 2022
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