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    cridgway Posts: 1, Reputation: 1
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    Feb 21, 2011, 05:29 PM
    Haberman’s controller, estimates total
    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?

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