Yoste Roofing uses job-order costing for each of its installations and repairs. Overhead is allocated based on the cost of roofer's wages. At the start of the year, annual roofer were estimated to be $575,000 based on 34,000 labor hours, and company overhead was estimated to be $630,000.
a.Briefly state why the use of a predetermined overhead rate would be preferred to assigning actual overhead to repair jobs. .
b.If a roofing job required shingles costing $4,000 and roofer time costing $6,800, how much will be the total cost of the job?