1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Font Paragraph Boyle\'s

Question

1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Font Paragraph Boyle's Body Shop repairs automobiles that have been involved in collisions. Its budget information follows: Budgeted direct labor cost $200,000 Budgeted overhead 500,000 Budgeted labor rate per hour $10 Since all of Boyle's technicians are paid the same rate, Boyle allocates overhead to jobs based on direct labor hours. Paul Evans brought his car to Boyle for fender repair. It took 6 hours and the new parts for the job totaled $200. What was the total cost of the Evans job? Dow... e here to search

Explanation / Answer

Q1. Pre-determined OH rate: Budgeted labour cosst: 200,000 Budgeted OH: 500,000 Labour rate per hour 20,000 hours Pre-determined OH rate: Budgeted OH / Labour hours: 500,000 /20,000 hours: $ 25 per labour hour Total cost of Job: Material 200 labour (6 hours @10) 60 OH (6 hours @25) 150 Total cost of Job: 410 Q2. Budgeted labour Cost: Partner manager Staff Accountant Total Estimated labour hours 1000 7500 25000 33500 Rate per hour 100 60 30.00 Budgeted Labour cost in $ 100000 450000 750000 1300000 Total Budgeted cost: $ 1300,000

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