Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage labor cost. At the beginning of 2020, they estimated total manufacturing overhead cost at...

Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage labor cost.  At the beginning of 2020, they estimated total manufacturing overhead cost 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 33 1/3% 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 Material cost $ 159,500Direct Labour cost $240,000Direct Labour hours 400 hoursSpecial Design cost $12,850Distribution quote for 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, given that a margin of 20% is applied.(d) Given that Job #4000 consisted of 250 units, determine the production cost
Nov 23, 2021
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