Wheeler s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to
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Question:
Wheelers 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:
Bike parts $
Factory machinery depreciation
Factory supervisor salaries
Factory direct labor
Factory supplies
Factory property tax
Advertising cost
Administrative salaries
Administrativerelated depreciation
Total expected costs $
Required:
Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $ per hour.
Determine the amount of applied overhead if actual hours are worked in the upcoming year.
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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