Sofia Gomez runs a mobile pet grooming service. She charges $26 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 900 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 8,800 Van insurance expense 1,400 Indirect materials 1. Predetermined overhead rate 2. Total job cost 3. Price quote $ 1,100 Tool depreciation 700 Other overhead $ 450 1,050 1. Compute the predetermined overhead rate using estimated grooming hours. 2. Sofia has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 3. If Sofia targets a markup of 20% on the total cost for each job, what price should she quote for the job in part2?

Sofia Gomez runs a mobile pet grooming service. She charges $26 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 900 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 8,800 Van insurance expense 1,400 Indirect materials 1. Predetermined overhead rate 2. Total job cost 3. Price quote $ 1,100 Tool depreciation 700 Other overhead $ 450 1,050 1. Compute the predetermined overhead rate using estimated grooming hours. 2. Sofia has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 3. If Sofia targets a markup of 20% on the total cost for each job, what price should she quote for the job in part2?

Name: H3.ACCT 13 Sofia Gomez runs a mobile pet grooming service. She charges
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Description: H3.ACCT 13 Sofia Gomez runs a mobile pet grooming service. She charges $26 direct labor per grooming hour. She applies overhead to jobs onthe basis of grooming hours. She predicts 900 grooming hours for the year. Her estimated overhead costs for the

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...

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York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
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Sofía Gomez runs a mobile pet grooming service. She charges $30 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 930 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 4,420 Van insurance expense 1,460 Indirect materials 1. Predetermined overhead rate 2. Total job cost 3. Price quote $ 1,130 Tool depreciation 730 Other overhead 1. Compute the predetermined overhead rate using estimated grooming hours. 2. Sofía has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 3. If Sofía targets a markup of 20% on the total cost for each job, what price should she quote for the job in part 2? + $ 480 1,080 Check my w
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