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CALCULATOR PRINTER NEX ion BACK Problem 4-32 (Part Level Submission) Sheridan Wings, Inc. manufactures airplanes for use in stunt company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Sheridan uses a job order costing shows. Sheridans factory is highly automated, using the latest in robotic technology. To keep costs low, the system to accumulate product costs. t the end of 2016, Sheridans accountants developed the following expectations for 2017 based on the marketing departments sales forecast: Budgeted overhead cost Estimated machine hours Estimated direct labor hours Estimated direct materials cost $1,520,000 $1,121,000 55,000 11,000 Sheridan s inventory count, completed on December 31, 2016, revealed the following ending inventory balances Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $250,000 $627,000 $3,070,000 The companys 2017 payroll data revealed thef actual payroll costs for the year Number Wage Rate Salary per Worked per Job Title Vice president and CFO Factory manager Assistant factory manager1 $178,000 $40,900
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Dont put percentage sign in the field, it is already given outside Solution: Predtermined overhead rate Budgeted Overhead cost / Estimated Direct material cost (1121000/1520000) 73.75% of Direct material cost

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