. Hill Inc, designs and manufacturers fishing rods. On June 1 it had one job wit

Question

. Hill Inc, designs and manufacturers fishing rods. On June 1 it had one job with a beginning WIP balance of 565. During June the job was finished and sold. Direct labor for the job cost was $75 and direct materials used were $60. Direct labors are paid a wage rate of $15 per hour and manufacturing overhead is applied to production at a rate of $10 per direct labor hour. The company marks up costs 35% to determine the selling price. What was the selling price of the job?

I have no idea how to find the allocated manufacturing overhead.

Thank you

Explanation / Answer

Direct labor = $75

Hour of labor spent = 75/15 = 5

So, Manufacturing Overhead = 5 hours * $10/hour = $50

Total Manufacture Cost = 565+ 75+ 60+ 50 = $750

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