Question 8 options:

Entry Rules:

Round your answers to the nearest PENNY (2 decimal places).

Use your rounded answer in ALL subsequent calculations.

Examples:

If your answer is $24,500.4746, enter 24500.47

If your answer is $24,500.4753, enter 24500.48

If your answer is $24,500.0012, enter 24500.00

Never enter $ or , when inputting numerical answers

QUESTION:

Jackson Inc. manufactures custom jackets and uses job costing to calculate the cost of its jobs with direct labour hours as its manufacturing overhead allocation base.

At the beginning of current year, the company estimated the following:

Estimated overhead costs	$768,500
Estimated direct labour hours	29,000

The company pays its employees an average amount per direct labour hour as follows:

Average pay per DLH

$20.00

The company just finished Job 720 and have the following information from the job:

Direct materials used	$20,200
Direct labour hours used	210

Use the above information to answer the following questions.

What is the company's predetermined manufacturing overhead rate per direct labour hour?

What is the total manufacturing overhead allocated to Job 720?

What is the total cost of Job 720?

If management want to earn a profit that equals 30% of the job's costs, how much would the company charge their customer for this job?