Ellens Company produces boxes. In 2022, the company incurred the following costs: There were no balances in

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Ellen’s Company produces boxes. In 2022, the company incurred the following costs:

There were no balances in the beginning or ending work in process and finished goods inventories. The company uses a normal cost system and applies overhead based on 90% of direct labor cost.

a. What is the amount of allocated overhead? Was overhead over- or underallocated? By what amount?

b. What are the period costs?

c. What are the total product costs?

d. What is the gross margin?

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Managerial Accounting

ISBN: 9780137689453

1st Edition

Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope

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Question Posted: Sep 02, 2023 07:15 AM

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Ellens Company produces boxes. In 2022, the company incurred the following costs: There were no balances in

Question:

Indirect labor Indirect materials Factory utilities and taxes Factory depreciation and rent Direct materials Selling costs Administrative costs Direct labor Sales $10,000 $4,000 $5,000 $6,000 $27,000 $9,000 $8,000 $30,000 $120,000

Step by Step Answer:

a Step 1 Calculate allocated overhead Allocated overhead Overhead rate Driver Allocated overhead 90 ...View the full answer

Managerial Accounting

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