Question

Pinnacle Inc. manufactures curtains to client specifications. It has two cost categories that are directly traced to its products: materials and labor. It also has estimated overhead that consists of: annual manufacturing supervisor's salary of $167,683 annual manufacturing plant cleaning costs of $171,486 annual manufacturing plant utilities of $171,869 Pinnacle is trying to calculate the cost of making Job #454, which includes: $11,645 in materials 28 hours of labor @ $12 per hour The company also expects to use 22,325 labor hours for the year. If Pinnacle allocates overhead based on $250,000 estimated direct labor dollars, what is the total cost ofJob #454? *Hint, make a job order cost sheet for Job 454. It should include materials, labor, and overhead. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar.

Answer 1

Annual manufacturing supervisor's salary	$       167,683
Annual manufacturing plant cleaning costs	$       171,486
Annual manufacturing plant utilities	$       171,869
Total Overhead	$       511,038
Estimated Direct Labor Cost	$       250,000
Overhead rate	204.42%

Total Cost for the Job 454

Direct Material	$    11,645.00
Direct Labor	$         336.00	=28*12
Overhead	$         686.85	=336*204.42%
Total Cost	$    12,667.85

It can be $12667.84 also due to rounding off error.