Sofa Gomez runs a mobile pet grooming service. She charges $22 direct labor per grooming hour. She

Sofía Gomez runs a mobile pet grooming service. She charges $22 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 820 grooming hours for the year. Her estimated overhead costs for the year follow. 

 

1. Compute the predetermined overhead rate using estimated grooming hours. 

2. Sofía has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 

3. If Sofía targets a markup of 20% on the total cost for each job, what price should she quote for the job in part2?

Transcribed Image Text:

Van depreciation Van maintenance $ 7,260 Van insurance expense 1,240 Indirect materials $1,020 Tool depreciation 620 Other overhead $ 370 970 Van depreciation Van maintenance $ 7,260 Van insurance expense 1,240 Indirect materials $1,020 Tool depreciation 620 Other overhead $ 370 970

Answer rating: 100% (QA)

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