Question: Patchwork Inc. manufactures quilts to client specifications. It has two cost categories that are directly traced to its products: materials and labor. It also has

Patchwork Inc. manufactures quilts to client specifications. It has two cost categories that are directly traced to its products: materials and labor. It also has estimated overhead that consists of:

annual manufacturing supervisor's salary of $137,582

annual manufacturing plant cleaning costs of $117,693

annual manufacturing plant utilities of $137,447

annual marketing costs of $39,405

Patchwork is trying to calculate the cost of making Job #454, which includes:

$11,462 in materials

20 hours of labor @ $12 per hour

The company also expects to use 24,465 labor hours for the year. If Patchwork allocates overhead based on $250,000 estimated direct labor dollars, what is the total cost of Job #454? *Hint, make a job order cost sheet for Job 454. It should include materials, labor, and overhead. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!