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20 July, 11:00

Job HE-65 at Wilson Manufacturing Inc. required $300 of direct materials and 15 direct labor hours at $10 per hour. The company's estimated total overhead cost for the year was $900,000 and estimated direct labor hours were 30,000.

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  1. 20 July, 11:06
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    Job HE-65 total cost 900 dollars

    Explanation:

    predeterminated overhead rate:

    expected cost / expected driver

    900,000 / 30,000 = $30

    Each labor hour generates $30 dollars of overhead according to our expectation

    Now we solve for the cost of job HE-65

    materials 300

    labor 15 hours x $10 = 150

    and overhead 15 hours x $30 each = 450

    total cost 300 + 150 + 450 0 900
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