Owings Corporation manufactures one product and accounts for costs by a job order cost system. You have
Question:
Owings Corporation manufactures one product and accounts for costs by a job order cost system. You have obtained the following information for the year ended December 31 of last year from the corporation's books and records:
1. Total manufacturing cost during last year (called cost to manufacture) was $1 million based on actual direct material, actual direct labor, and applied manufacturing overhead on the basis of actual direct labor-dollars.
2. Manufacturing overhead was applied to work in process at 75 percent of direct labor-dollars. Applied manufacturing overhead for the year was 33 percent of the total manufacturing cost during last year.
Compute actual direct material used, actual direct labor, and applied manufacturing overhead.
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