Accountants are testing two plantwide methods to calculate Applied Manufacturing Overhead for Job A1. Estimates for...
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Accountants are testing two plantwide methods to calculate Applied Manufacturing Overhead for Job A1.
Estimates for the company include the following information:
Estimated Variable Manufacturing Overhead per unit = $2.50/Direct Labor Hours
Estimated Fixed Manufacturing Overhead = $1,200
Estimated Direct Labor Hours = 1000 Direct Labor Hours
Information for Job A1 job sheet is below:
Actual Direct Material Cost = $2,000
Actual Direct Labor Costs $10,000 and the wage rate= $20/DLH
If the company chooses to use an estimated Predetermined overhead rate based on Direct Labor hours, what is the product cost for Job A1?
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