1 Preheat oven to 400 degrees F (200 degrees C). 2  Unroll the pie crusts, and cut 2 6-inch rounds from the dough; cut the remaining dough into 1/8-inch strips for a lattice crust. 3  Fit the rounds into 2 5-inch mini pie dishes. Unroll the pie crusts, and cut 2 6-inch rounds from the dough; cut the remaining dough into 1/8-inch strips for a lattice crust. 2  Fit the rounds into 2 5-inch mini pie dishes. 3  In a bowl, stir together the cherries, tapioca, sugar, and almond extract; let the filling stand for 5 minutes to soften the tapioca.
In most companies, the ratio of direct labor to indirect labor is about 3 to 1. The better companies get closer to 4 to 1. In most companies direct labor spends about 70% of its time actually working on making the product, with the rest spent on meetings, downtime, waiting for parts, paid breaks, and other things that do not create value.
Predetermined overhead rate is estimated overhead divided by estimated activity. The example states that estimated activity is 200,000 direct labor hours. $1,250,000 / 200,000 direct labor hours = $6.25 per direct labor hour (donât forget to label your numbers) Applying the predetermined overhead rate to jobs. Alright, so we have a rate. Now what? We must apply the rate to our jobs. The rate from our example above is $6.25 per direct labor hour. How do we apply this to our jobs? Based on the direct labor hours worked on the job. For each direct labor hour worked, we will add $6.25 of overhead to the job. Applied overhead is overhead added to a job by taking the predetermined overhead rate multiplied by the actual activity. Applied overhead is added to direct materials and direct labor to calculate total job cost. Total Job Cost = Direct Materials + Direct Labor + Applied Overhead. Every time a job is completed, overhead is applied to the job. The total cost of all the jobs completed over the course of the year is cost of goods sold. Example #2