Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to...

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Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: $350,800 61,000 Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries 143,500 228,966 43,400 30,750 26,000 50,000 24,700 Administrative-related depreciation Total expected costs $959,116 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.31 per hour. 2. Determine the amount of applied overhead if 18,200 actual hours are worked in the upcoming year. Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: $350,800 61,000 Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries 143,500 228,966 43,400 30,750 26,000 50,000 24,700 Administrative-related depreciation Total expected costs $959,116 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.31 per hour. 2. Determine the amount of applied overhead if 18,200 actual hours are worked in the upcoming year.

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Expected Factory labor cost 228966 Cost per direct labor ... View the full answer