Question - ABC Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on direct labor hours. Last year, the company made the following estimates for this year.
Direct labor costs $12,600,000
Factory overhead costs $3,060,000
Direct Labor Hours $600,000
Machine Hours $450,000
(a) What is the budgeted overhead rate for the company? (Show your work)
(b) If Job #34199 had the costs listed below, what would be the total cost of Job #34199? (Show your work)
Material costs were $100,000;
Direct labor costs were $140,000;
Direct labor hours were 12,000; and
Machine hours were 15,000.
Please show all of your calculations.