Please help with parts c & d. Thank you Epsilon Manufacturing Company uses a predetermined manufacturing...
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Please help with parts c & d. Thank you Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W5oo. Data for the job are as follows: Direct materials cost $169,450 $230,000 Direct labour cost Direct labour hours 400 hours Special Design Cost Distribution quote from haulage company Units of product produced $12,300 $17.930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied. d) How much was the production cost per unit (cost per crate) of finished product? Please help with parts c & d. Thank you Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W5oo. Data for the job are as follows: Direct materials cost $169,450 $230,000 Direct labour cost Direct labour hours 400 hours Special Design Cost Distribution quote from haulage company Units of product produced $12,300 $17.930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied. d) How much was the production cost per unit (cost per crate) of finished product?
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Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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