Sofía Gomez runs a mobile pet grooming service. She charges $25 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 870 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 5,920 Van insurance expense 1,340 Indirect materials 1. Predetermined overhead rate 2. Total job cost 3. Price quote $ 1,070 Tool depreciation 670 Other overhead $ 420 1,020 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 part2?

Sofía Gomez runs a mobile pet grooming service. She charges $25 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 870 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 5,920 Van insurance expense 1,340 Indirect materials 1. Predetermined overhead rate 2. Total job cost 3. Price quote $ 1,070 Tool depreciation 670 Other overhead $ 420 1,020 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 part2?

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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