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1 The controller asked you to examine different distrubution methods for applying FOH to the various production orders that are processed during a year. The
1 The controller asked you to examine different distrubution methods for applying FOH to the various production orders that are processed during a year. The following information was taken from the annual budget of Ultron Company: Direct Labor $480,000 Direct Labor hours 144,000 hours Machine hours 100,000 hours Manufacturing costs: Direct materials $ 200,000 Direct labor 480,000 Indirect labor 100,000 electric power 40,000 payroll taxes 22,800 machine maintenance and repair 15,200 factory supplies 6,000 factory heat and light 4,000 Depreciation, taxes, and insurance: Factory buildings 130,000 Machinery 402,000 $ 1,400,000 a. b. Calculate FOH rates for the following independent volumes: 1 Direct labor cost 2 Direct labor hours 3 Machine hours Prepare a schedule showing total cost of Job 101 three different ways using your answers from part a). Job information for Job 101 shows the following: Direct Materials, $4,000; Direct labor hours, 8,000; Direct labor cost, $20,000; machine hours, 3,800
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