How much overhead should dbc estimated for this job

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Reference no: EM13143072

The defense Builders Company (DBC) is a defense contractor that produces major weapons systems for the federal government. The company uses a normal job-order costing the system and applies overhead to individial contracts based on machine hours. The following information about expected and actual costs and activity is available:
Estimated overhead costs for 2004- $14,000,000
Actual overhaead costs for 2003 - $14,950,000
Estimated machine hours for 2004- 2,500,00
Actual machine hours for 2003- 2,600,000

In 2004, DBC will be submitting a bid for a job that is expected to require $810,000 in direct materials cost, $225,000 in direct labor costs, and 80,000 machine hours. How much overhead should DBC estimated for this job?

Reference no: EM13143072

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