Predetermined Overhead Rates Guava, Inc., manufactures one product and accounts for costs using a job cost system.
Question:
Predetermined Overhead Rates Guava, Inc., manufactures one product and accounts for costs using a job cost system. You have ob- tained the following information from the corporation’s books and records for the year ended December 31, Year 1:
* Total manufacturing cost during the year was $2,000,000 based on actual direct material, actual direct labor, and applied manufacturing overhead.
* Manufacturing overhead was applied to work in process at 150 percent of direct labor dollars. Applied manufacturing overhead for the year was 50 percent of the total manufacturing cost during the year.
Required Compute actual direct material used, actual direct labor, and applied manufacturing overhead. (Hint: The total of these costs is $2,000,000.)
Step by Step Answer:
Fundamentals Of Cost Accounting
ISBN: 9780073018379
1st Edition
Authors: Michael W Maher, William N. Lanen, Madhav V. Rajan