Question
A company has the following information for Job Alpha during July: Units produced 257 Actual materials used 1,722 lbs. Actual materials cost $ 5.85 per
- A company has the following information for Job Alpha during July:
Units produced | 257 | |
Actual materials used | 1,722 | lbs. |
Actual materials cost | $ 5.85 | per lb. |
Actual labor hours incurred | 771 | |
Actual labor rate | $ 14.25 | per hour |
Work in process, July 1 | $ 4,000 | |
Work in process, July 31 | $ - | |
The company applies manufacturing overhead to jobs based on direct labor hours.
Additional information for the company in July is as follows:
Total estimated labor hours | 2,170 | |
Standard materials per unit | 7 | lbs. |
Standard materials cost | $ 5.50 | per lb. |
Standard labor hours per unit | 2.80 | |
Standard labor rate | $ 15.00 | per hour |
Standard variable overhead | $ 3.00 | per labor hour |
Standard fixed overhead | $ 2.00 | per labor hour |
*based on 35,000 labor hours | ||
Actual total output in units | 755 | |
Actual total labor hours | 2,454 | |
Actual variable overhead | $ 3.40 | per labor hour |
Actual total fixed overhead | $ 4,040 |
- Calculate the company’s total estimated overhead for July:
- If the company uses a normal costing system, calculate the costs incurred by Job Alpha in July:
- Calculate the total cost of Job Alpha using a normal costing system:
- Calculate the materials flexible budget for Job Alpha in July:
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