Helinna Inc. manufactures custom jackets and uses job costing to calculate the cost of its jobs with
Question:
Helinna Inc. manufactures custom jackets and uses job costing to calculate the cost of its jobs with direct labour hours as its manufacturing overhead allocation base.
At the beginning of current year, the company estimated the following:
| Estimated overhead costs | $714,000 |
| Estimated direct labour hours | 28,000 |
The company pays its employees an average amount per direct labour hour as follows:
| Average pay per DLH | $19.00 |
The company just finished Job 680 and have the following information from the job:
| Direct materials used | $19,800 |
| Direct labour hours used | 190 |
Use the above information to answer the following questions.
What is the company's predetermined manufacturing overhead rate per direct labour hour?
What is the total manufacturing overhead allocated to Job 680?
What is the total cost of Job 680?
If management want to earn a profit that equals 28% of the job's costs, how much would the company charge their customer for this job?
Expert Answer:
1 The companys predetermined manufacturing overhead rate per direct labour hour can be calculated us... View the full answer
