ACCT1003 Job Costing Il assessment october 31 2020.docx -...

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ACCT1003, GROUP 2 Job Costing Il FORMATIVE ASSESSMENT October 31, 2020 Rolana Abel Jamila Davis Shamika Joseph Cardel McLean Malynda Ramsey Kareem Verneuil EPSILON MANUFACTORING COMPANY JOB COSTING
Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturingoverhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000.The administration and selling overheads are to be absorbed in each job cost at 15% of productioncost. Distribution cost should be added to each job according to quotes from outside carriagecompanies.The company wishes to quote for job # W500. Data for the job are as follows:Direct materials cost$169,450Direct labour cost$230,000Direct labour hours400 hoursDistribution quote from haulage company$17,930Units of product produced250 cratesa) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018.b) How much manufacturing overhead was allocated to Job #W500?c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is

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