Business, 21.09.2021 08:40 jivsf

Foto-Fast Copy Shop provides a variety of photocopying and printing services. On June 5, the owner invested in some computer-aided photography equipment that enables customers to reproduce a picture or illustration, input it digitally into the computer, enter text into the computer, and then print out a four-color professional quality brochure. Prior to the purchase of this equipment, Foto-Fast Copy Shop's overhead averaged $31,200 per year. After the installation of the new equipment, the total overhead increased to $78,000 per year. Foto-Fast Copy Shop has always costed jobs on the basis of actual materials and labor plus overhead assigned using a predetermined overhead rate based on direct labor hours. Budgeted direct labor hours for the year are 7,800, and the wage rate is $7 per hour.

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Foto-Fast Copy Shop provides a variety of photocopying and printing services. On June 5, the owner i...

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