Wheeler\'s Bike Company manufactures custom racing bicycles. The company uses a

Question

Wheeler's 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 Administrative-related depreciation Total expected costs $340,800 58,500 136,000 204,313 38,400 27,250 24,500 51,000 $902,963 Required 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.81 per hour. (Round your answer to 2 decimal places.) Predetermined Overhead Rate per DL Hour 2. Determine the amount of applied overhead if 17,600 actual hours are worked in the upcoming year. (Round your intermediate calculations to 2 decimals. Round your final answer to the nearest whole dollar.) ied Overhead

Explanation / Answer

Calculate predetermine overhead rate :

2) applied overhead = 17600*15.04 = 264704

Factory machine depreciation 58500 Factory supervisor salary 136000 Factory supplies 38400 Factory property tax 27250 Total factory overhed 260150 Labour hour (204313/11.81) 17300 Predetermine overhed rate 15.04 per labour hour

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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