(TCO 2) 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
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
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.