Problem - XYZ Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on machine hours. Last year, the company made the following estimates for this year.
Direct labor costs $15,000,000
Factory overhead costs $18,500,000
Direct Labor Hours $500,000
Machine Hours $1,000,000
(a) What is the budgeted overhead rate for the company? (Show your work)
(b) If Job #33133 had the costs listed below, what would be the total cost of Job #33133? (Show your work)
Material costs were $600,000;
Direct labor costs were $750,000;
Direct labor hours were 20,000; and
Machine hours were 22,000.