Haberman’s controller, estimates total
Overhead costs to be $100,000. Production manager
Portia Kabler told Kristin that her best estimate for
Total production time for the year is 20,000 hours.
Production data for the first quarter of the year is
Shown below:
Parkas Shirts Pants Shoes
Direct materials used $16,000 $12,000 $9,500 $11,500
Direct labor cost
13,000 10,000 7,000 9,500
Direct labor hours
1,500 1,250 850 950


A. Calculate Haberman’s predetermined overhead
Rate based on direct labor hours.
B. Calculate the overhead cost to be assigned to
Parkas, shirts, pants, and shoes.
C. Calculate the total manufacturing cost of parkas,
Shirts, pants, and shoes.
D. Based on your knowledge of costing systems
Described in the chapter, which other method(s)
Might Haberman consider to measure and track
The cost of its products? Why would the company
Choose to continue using job costing as it cur-
Rently does?