The turquoise company uses predetermined overhead rates to

Reference no: EM13579876

The Turquoise Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, the company made the following estimates:

                                               Dept A                            Dept B
Direct labor cost                $ 65,000                          $ 42,000
Manufacturing Overhead      $ 91,000                           $ 48,000
Direct labor hours                   8,000                              10,000
Machine hours                        3,000                              12,000

They recently received an order for a job from a company in Vermont. The expected cost of this job is:

                                               Dept A                             Dept B
Direct labor cost                   $ 7,000                          $ 3,500
Direct labor hours                     500                                  600
Machine hours                         100                                  435

What is the estimated overhead cost for this job?

Reference no: EM13579876

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