Rooftop Solar estimated the following annual costs: Expected annual direct labor hours 12,000 Expected annual direct labor
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Question:
Rooftop Solar estimated the following annual costs:
Expected annual direct labor hours 12,000
Expected annual direct labor cost $198,000
Expected machine hours 10,400
Expected material cost for the year $65,000
Expected manufacturing overhead $218,400
Job 612 used $350 of direct materials, 26 direct labor hours, and 14 machine hours. Actual labor cost is $17 per hour.
a. If Rooftop Solar allocates overhead based upon machine hours, how much is the overhead rate?
b. Determine the cost of job 612.
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