Can an expert please solve this problem so that I can verify my answer for class

Question

Can an expert please solve this problem so that I can verify my answer for class tomorrow? -Evan

Cost Management: A Strategic Emphasis (7th Edition) Chapter 4, Problem 36E Bookmark Show all steps ON Problem Application of Overhead Norton Associates is an advertising agency in Austin, Texas. The company's controller estimated that it would incur $325,000 in overhead costs for the current year. Because the overhead costs of each project change in direct proportion to the amount of direct professional hours incurred, the controller decided that overhead should be applied on the basis of professional hours. The controller estimated 25,000 professional hours for the year During October, Norton incurred the following costs to make a 20-second TV commercial for Central Texas Bank: Direct materials Direct professional hours ($50/hour) $32,000 1,200 The industry customarily bills customers at 150% of total cost. Required 1. Compute the predetermined overhead rate 2. What is the total amount of the bill that Norton will send Central Texas Bank?

Explanation / Answer

1) Predetermined overhead rate Estimated overhead/Estimated hours 325,000/25,000 13 per hour 2) Actual bill of total amount Direct materials 32,000 Direct labor (1200*50) 60000 overhead applied (1200*13) 15600 Total amount of bill 107,600

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.