Veronica Company allocates overhead costs to jobs on the basis of direct labor-bows. 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 avenge monthly direct labor-hours are 20,000. Among the jobs worked on in November 2005 were two jobs, G and II, 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 II.
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?
Sample Solution
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regards to the osmosis of pieces into lumps. Mill operator recognizes pieces and lumps of data, the differentiation being that a piece is comprised of various pieces of data. It is fascinating regards to the osmosis of pieces into lumps. Mill operator recognizes pieces and lumps of data, the differentiation being that a piece is comprised of various pieces of data. It is fascinating to take note of that while there is a limited ability to recall lumps of data, how much pieces in every one of those lumps can change broadly (Miller, 1956). Anyway it’s anything but a straightforward instance of having the memorable option huge pieces right away, somewhat that as each piece turns out to be more natural, it very well may be acclimatized into a lump, which is then recollected itself. Recoding is the interaction by which individual pieces are ‘recoded’ and allocated to lumps. Consequently the ends that can be drawn from Miller’s unique work is that, while there is an acknowledged breaking point to the quantity of pi>
