Test: Week 3 -review assessment 1 Submit Test This Question: 1 pt 5 of 16 (15 co

Question

Test: Week 3 -review assessment 1 Submit Test This Question: 1 pt 5 of 16 (15 complete) This Test: 16 pts possible Have Fun Industries manufactures custom-designed playground equipment for schools and city parks Have Fun expected to incur $533,000 of manufacturing overhead cost. 41.000 of direct labor hours, and $1.394 000 of direct labor cost during the year (the cost of drect labor is $34 per hour). The company allocates manufacturing overhead on the basis of direct labor hours During June Have Fun completed Job 309 The job used 185 drect labor hours and required $14.200 of direct materials The City of Southtown has contracted to purchase the playground equipment at a price of 28% over mandadumg cost bund your answers to the nearest whole number) rice to charge 1. Calculate the manufacturing cost of Job 309 2. How much will the City of Southtown pay for this playground equipment? t question Print Done

Explanation / Answer

1. Calculation of pre determined overhead

Predetermined OH Rate = estd. overhead/direct labour hours = 533,000 / 41,000 = $ 13

2. Calculation of job cost 309

3. City will pay 22895 + (28% of 22895) = $ 29305.60

Please support and give a like for the solution so the other students using the platform can also acknowledge. Thanks

Direct material $ 14200 Direct labour (34 x 185 hours) $ 6290 Overhead (13 x 185 hours) $ 2405 Total $ 22895

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