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Question - The company manufactures a variety of engines for use in farm equipment. At the beginning of the current year, Marshfield estimated that it's over ahead for the common year could be $404,800. it also anticipated using 23,000 direct labor hours for the year. Marshfield pays its employees on average of $32 per direct labor hour. Marshfield just finished job 371, which consisted of two engines for a farm equipment manufacturer. The costs an hours for this job consisted of $17,000 in direct materials used and 140 direct labor hours.
Required -
1) What is Marshfield's predetermined manufacturing overhead rate based on direct labor cost?
2) Calculate the manufacturing overhead to be allocated based on direct labor cost to job 371.
3) What is the total cost of job 371?
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