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Problem - Kovack Construction estimated its factory overhead for 2021 to be $123,250. It assigns overhead to jobs based on the direct labor cost of a job. The estimated total direct labor cost for 2021 was $85,000. One of the jobs worked on in January 2021 was for Hillier Chemicals. The Hillier job required $900 of direct materials and incurred $8,200 of direct labor costs.
a) Calculate the predetermined overhead rate for 2021.
b) Calculate the amount of overhead to assign to the Hillier job.
c) Show a calculation to determine the total cost of the Hillier job.
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