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A company produces bird food. During April, itproduced147 batches of food, each batch weighing 1,00 lbs. Toproduce this quantity of output, the company purchased and
A company produces bird food. During April, itproduced147 batches of food, each batch weighing 1,00 lbs. Toproduce this quantity of output, the company purchased and used148,450 lbs of direct material at a cost of $593,800. It alsoincurred direct labor costs of $17,600 for the 2,200 hours workedby employees on the food production crew. Manufacturingoverhead incurred at the food plant during April totaled $3,625, ofwhich $2,450 was considered fixed. The company's standardcost onformation for 1,000 lb batches of bird food is asfollows:
Direct materials standardprice................................. $4.20 per pound
Standard quantity allowed perbatch........................ 1,020 pounds
Direct labor standardrate....................................... $8.50per hour
Standard hours allowed perbatch.......................... 14 direct labor hours
fixed overheadbudgeted....................................... $2,800 per month
Normal level ofproduction.................................... 140 batches per month
Variable overhead applicationrate........................ $ 9.00 per batch
Fixed overhead applaication rate
( $2,800 /140batches)........................................ 20.00 per batch
Total overhead applicationrate............................ 29.00 per batch
g. record the journal entry to transfer the 147 batches offood produced in April to Finished Goods
h. record the journal entry to close any over-or underappliedoverhead to Cost of Goods Sold
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