Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $ 586,600 of manufacturing overhead cost, 41,900 of direct labor hours, and $ 1,592,200 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours.
During May, Playtime completed Job 304. The job used 190 direct labor hours and required $ 14,800 of direct materials. The City of Jonestown has contracted to purchase the playground equipment at a price of 28 % over manufacturing cost.
Required:
a. Calculate the manufacturing cost of Job 304.
Answers: 3
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Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Pl...
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