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 co 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 Administrative-related depreciation Total expected costs $ 340,800 59,000 142,500 231,990 46,400 25,750 18,000 49,000 18,700 $ 932,140 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.21 per hour. 2. Determine the amount of applied overhead if 18,700 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 co 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 Administrative-related depreciation Total expected costs $ 340,800 59,000 142,500 231,990 46,400 25,750 18,000 49,000 18,700 $ 932,140 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.21 per hour. 2. Determine the amount of applied overhead if 18,700 actual hours are worked in the upcoming year.
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1 To calculate the predetermined overhead rate per direct labor hour you need to divide the estimate... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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