Managerial Accounting

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Normal Job Order Costing: Calculating Overhead (PH)


Paddy Hope Industries manufactures custom wedding cakes. Paddy's actual and estimated costs for a swanky wedding cake that feeds 200 people are as follows:

Actual materials: \$75
Actual labor: \$20/hour for 15 hours
Standard overhead rate: \$2.00 per serving
Standard profit margin: 25% of cost

What is Paddy Hope's overhead assigned to this cake?