Sagnik B.

asked • 02/08/15

desperately need help managerial accounting question, will give best rating immediately

The Raleigh Company is located in North Carolina and uses predetermined overhead rates to apply manufacturing overhead costs to jobs. The predetermined overhead rate is based on machine hours in Department A and direct labor costs in Department B. At the beginning of the year, the company made the following estimates :

Dept A : Direct Labor Cost : $65,000 Dept B : $40,000

Dept A : Manufacturing Overhead : $87,000 Dept B : $50,000

Dept A : Direct Labor Hours : 8,000 Dept B : 10,000

Dept A : Machine Hours : 3,000 Dept B : 12,000

Raleigh recently received an order from a company in Vermont. The expected cost of this job is :

Dept A : Direct Materials : $10,000 Dept B : Direct Materials : $700

Dept A: Direct Labor Cost : $7,000 Dept B: $3,500

Dept A : Direct Labor Hours : 500 Dept B: 600

Dept B : Machine Hours : 100 Dept B : 435

Question : What is the estimated total cost of this job?

A) 7275.00 B) 28,475.00 C) 10,500.00 D) 10,700.00

Please show help with steps and answer.

1 Expert Answer

By:

Sam L H. answered • 10/05/15

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