All Wood Industries manufactures custom-designed playground equipment for schools and city parks. All Wood expected to incur $637,500 of manufacturing overhead cost, 42,500 of direct labour hours, and $860,000 of direct labour cost during the year (the cost of direct labour is $38 per hour). The company allocates manufacturing overhead on the basis of direct labour hours. During May, All Wood completed Job 305. The job used 180 direct labour hours and required $13,000 of direct materials. The City of Ogdenville has contracted to purchase the playground equipment at a price of 23% over manufacturing cost.
1. Calculate the manufacturing cost of Job 305.
2. How much will the City of Ogdenville pay for this playground equipment?

  • CreatedApril 30, 2015
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