Question

Leisure Industries manufactures custom- designed playground equipment for schools and city parks. Leisure expected to incur $ 828,000 of manufacturing overhead cost, 41,400 of direct labor hours, and $ 828,000 of direct labor cost during the year (the cost of direct labor is $ 20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During February, Leisure completed Job 308. The job used 180 direct labor hours and required $ 15,400 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 25% over manufacturing cost.

Requirements
1. Calculate the manufacturing cost of Job 308.
2. How much will the City of Adams pay for this playground equipment?



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  • CreatedAugust 27, 2014
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