Question

Dansville Restaurant Supply manufactures commercial stoves and ovens for restaurants and bakeries. The company uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base. At the beginning of the current year, Dansville estimated that its overhead for the coming year would be $ 356,400. It also anticipated using 27,000 direct labor hours for the year. Dansville pays its employees an average of $ 24 per direct labor hour. Dansville just finished Job 371, which consisted of two large ovens for a regional bakery. The costs for Job 371 were as follows:
Job 371
Direct materials used................................................. $ 16,000
Direct labor hours used.............................................. 125

Requirements
1. What is Dansville’s predetermined manufacturing overhead rate based on direct labor cost?
2. Calculate the manufacturing overhead to be allocated based on direct labor cost to Job 371.
3. What is the total cost of Job 371?



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  • CreatedAugust 27, 2014
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