HH Electric reports the following information. Direct labor rate Non-materials-related overhead Materials-related overhead Target profit margin (on both conversion and direct materials) a. Compute the time charge per hour of direct labor. b. Compute the materials markup percentage. c. What price should the company quote for a job requiring four direct labor hours and $600 in materials? a. Time charge per hour of direct labor b. Materials markup c. Time and materials price $ 45 per DLH $ 25 per DLH 5% of direct materials cost 20% %

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter4: Job-order Costing And Overhead Application
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Problem 47E: Cost Flows Consider the following independent jobs. Overhead is applied in Department 1 at the rate...
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HH Electric reports the following information.
Direct labor rate
Non-materials-related overhead
Materials-related overhead
Target profit margin (on both conversion and direct materials)
a. Compute the time charge per hour of direct labor.
b. Compute the materials markup percentage.
c. What price should the company quote for a job requiring four direct labor hours and $600 in materials?
a. Time charge per hour of direct labor
b. Materials markup
c. Time and materials price
$ 45 per DLH
$ 25 per DLH
5% of direct materials cost
20%
%
Transcribed Image Text:HH Electric reports the following information. Direct labor rate Non-materials-related overhead Materials-related overhead Target profit margin (on both conversion and direct materials) a. Compute the time charge per hour of direct labor. b. Compute the materials markup percentage. c. What price should the company quote for a job requiring four direct labor hours and $600 in materials? a. Time charge per hour of direct labor b. Materials markup c. Time and materials price $ 45 per DLH $ 25 per DLH 5% of direct materials cost 20% %
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