# Question: Lakeview Restaurant Supply manufactures commercial stove and ovens for restaurants

Lakeview Restaurant Supply manufactures commercial stove 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, Lakeview estimated that its overhead for the coming year will be \$ 404,800. It also anticipated using 23,000 direct labor hours for the year. Lakeview pays its employees an average of \$ 32 per direct labor hour. Lakeview 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............................................ \$ 13,500
Direct labor hours used...................................................... 140

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

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