Description
Problem 19-1
Veronica
Company allocates overhead costs to jobs on the basis of direct labor-hours.
Its estimated average monthly factory costs for 2005 were as follows:
Average Monthly Costs
Direct
material cost $60,000
Direct
labor cost 300,000
Overhead
cost 180,000
Its
estimated average monthly direct labor-hours are 20,000. Among the jobs worked
on November 2005 were two jobs, G and H, for which the following information
was collected:
Job G Job H
Direct
material cost $10,000 $10,000
Direct
labor cost 28,000 32,000
Direct
labor-hours 2,400 2,800
Required:
a)
Compute the overhead rate for Veronica Company.
b)
Compute the total production costs of jobs G and H.
c)
At what amounts would customers be billed if the company’s practice was to
charge 180 percent of the production cost of each job?
Reviews
There are no reviews yet.