Answer each question independently. Required: 1. Mirage Mirrors predetermined overhead rate for manufacturing overhead is $18 per

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Answer each question independently.


Required:

1. Mirage Mirror’s predetermined overhead rate for manufacturing overhead is $18 per direct labour-hour. The direct labour rate is $24 per hour. If the budgeted direct labour cost was $300,000, what was the budgeted manufacturing overhead?

2. Zion wants to compute the total cost for preparing a corporate tax return for his client. His labour is the only direct cost at $65 per hour. He estimates monthly overhead costs at $7,500 for 150 direct labour-hours. If the tax return requires 13 hours to prepare, what will be the total direct cost, indirect cost, and job cost, respectively?

3. Kyle Corporation had the following account balances at the end of this year:

Direct materials inventory..........................................$1,000
Work in process.................................................................680
Finished goods..................................................................450
Manufacturing overhead control....................................122 credit
Cost of goods sold............................................................800

Assuming that over- or underapplied overhead is written off to cost of goods sold, prepare the appropriate journal entry, and compute the adjusted balance in the cost of goods sold account.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

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