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Business, 12.06.2020 22:57 gearchanger52p02zf8
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 $ 350,000 Factory machinery depreciation 55,000 Factory supervisor salaries 140,000 Factory direct labor 300,000 Factory supplies 7,500 Factory property tax 37,500 Advertising cost 14,500 Administrative salaries 80,000 Administrative-related depreciation 16,000 Total expected costs $ 1,000,500 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $15 per hour. 2. Determine the amount of applied overhead if 18,500 actual hours are worked in the upcoming year.
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Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system...
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