Lakeview Industries uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base. (Click the icon to view additional information.) Read the requirement Requirement 1. What is Lakeview's predetermined manufacturing overhead rate based on direct labor (DL) cost? Determine the formula to calculate Lakeview's predetermined overhead rate based on direct labor costs, then calculate the rate Predetermined overhead rate More info The company manufactures a variety of engines for use in farm equipment. At the beginning of the current year, Lakeview estimated that its overhead for the coming year would be $324,800. It also anticipated using 29,000 direct labor hours for the year. Lakeview pays its employees an average of $28 per direct labor hour. Lakeview just finished Job 371, which consisted of two engines for a farm equipment manufacturer. The costs and hours for this job consisted of $17,000 in direct materials used and 130 direct labor hours. Requirements 1. 2. Calculate the manufacturing overhead to be allocated based on direct labor cost to Job 371. 3. What is the total cost of Job 371? What is Lakeview's predetermined manufacturing overhead rate based on direct labor cost? - X
Lakeview Industries uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base. (Click the icon to view additional information.) Read the requirement Requirement 1. What is Lakeview's predetermined manufacturing overhead rate based on direct labor (DL) cost? Determine the formula to calculate Lakeview's predetermined overhead rate based on direct labor costs, then calculate the rate Predetermined overhead rate More info The company manufactures a variety of engines for use in farm equipment. At the beginning of the current year, Lakeview estimated that its overhead for the coming year would be $324,800. It also anticipated using 29,000 direct labor hours for the year. Lakeview pays its employees an average of $28 per direct labor hour. Lakeview just finished Job 371, which consisted of two engines for a farm equipment manufacturer. The costs and hours for this job consisted of $17,000 in direct materials used and 130 direct labor hours. Requirements 1. 2. Calculate the manufacturing overhead to be allocated based on direct labor cost to Job 371. 3. What is the total cost of Job 371? What is Lakeview's predetermined manufacturing overhead rate based on direct labor cost? - X
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 3MCQ: In a normal costing system, the cost of a job includes a. actual direct materials, actual direct...
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Transcribed Image Text:Lakeview Industries uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base.
(Click the icon to view additional information.)
Read the requirement
Requirement 1. What is Lakeview's predetermined manufacturing overhead rate based on direct labor (DL) cost?
Determine the formula to calculate Lakeview's predetermined overhead rate based on direct labor costs, then calculate the rate
Predetermined overhead rate
More info
The company manufactures a variety of engines for use in farm equipment. At the
beginning of the current year, Lakeview estimated that its overhead for the coming
year would be $324,800. It also anticipated using 29,000 direct labor hours for the
year. Lakeview pays its employees an average of $28 per direct labor hour.
Lakeview just finished Job 371, which consisted of two engines for a farm
equipment manufacturer. The costs and hours for this job consisted of $17,000 in
direct materials used and 130 direct labor hours.
Requirements
What is Lakeview's predetermined manufacturing overhead rate based on
direct labor cost?
1.
2.
Calculate the manufacturing overhead to be allocated based on direct labor
cost to Job 371.
3. What is the total cost of Job 371?
-
X
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