Sweet Co. uses
budgeted overhead rates to apply overhead to individual jobs. They use a system
based on direct labor hours. Last year, the company made the following
estimates for this year.
Direct labor costs $42,000,000
Factory overhead costs $7,500,000
Direct Labor Hours 150,000
Machine Hours 100,000
(a) What is the budgeted overhead rate for the company?
(b) If Job #34567 had the following:
Material costs were $400,000;
Direct labor costs were $300,000;
Direct labor hours were 15,000; and
Machine hours were 20,000,
Then what is the total cost of Job #34567?