Frodo Backpacks, Inc. manufacture small-batch backpacks specifically designed for high intensity adventures, such as a perilous journey
Question:
Frodo Backpacks, Inc. manufacture small-batch backpacks specifically designed for high intensity adventures, such as a perilous journey to Mount Doom to save the world. They use an activity based costing method to allocate the manufacturing overhead costs. The overhead costs and driver estimates are provided below:
Activity | Cost | Cost Driver | Estimated volume |
Textiles | $173,960 | machine hours | 22,000 machine hours |
Assembly | $386,200 | DL hours | 34,000 DL hours |
During the month of March, Frodo Backpacks worked on two different jobs. Both jobs, Job M-203 and Job D-682 were finished in March. Data for the jobs are as follows:
Job M-203 | Job D-682 | |
Beginning balance | $28,500 | $26,200 |
Direct materials | $46,720 | $38,900 |
Direct labor costs | $33,400 | $40,500 |
Actual direct labor hours | 1,336 direct labor hours | 1,620 direct labor hours |
Actual machine hours | 5,600 machine hours | 6,300 machine hours |
A) Using the information provided, please calculate the total applied manufacturing overhead for Job M-203. Please provide your answer to the nearest whole dollar, and do not use the "$" sign.
B)Using the information provided, please calculate the total applied manufacturing overhead for Job D-682. Please provide your answer to the nearest whole dollar, and do not use the "$" sign.
C)Assuming there are no other finished jobs waiting to be sold, please calculate the finished goods ending inventory. Please provide your answer to the nearest whole dollar, and do not use the "$" sign.
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey