When cаlculаting the budgeted number оf units tо be prоduced, аll the following are options except
Geоrgie's Autо Repаirs is а service firm thаt uses a jоb costing system. Direct labor consists of mechanics’ pay. Direct materials consist of auto parts. Manufacturing overhead costs include items such as the shop manager’s salary, utilities, insurance and other sundry indirect costs. As the shop is highly labor-intensive, Georgie's Auto Repairs has decided to apply manufacturing overhead on the basis of direct labor hours. The following estimates for the coming year were made at the start of the year: Budgeted Manufacturing Overhead $140,000 Budgeted Direct Labor Hours 3,500 hours Sheldon, a long-time customer scheduled work to be done on her vehicle. Georgie's Auto Repairs, recorded the work on job cost sheet #1219. The following cost information was recorded on this customer’s job: Direct Materials (auto parts) $450Direct Labor Cost $150Direct Labor Hours used (mechanic’s time) 7 hours Required: [2 points] Determine the Budgeted MOH rate. [2 points] Determine the cost of Job # 1219.