Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amber Stone Company applies overhead on the basis of direct labour costs. The company estimates annual overhead costs will be RM1,520,000 and annual direct labour

Amber Stone Company applies overhead on the basis of direct labour costs. The company estimates annual overhead costs will be RM1,520,000 and annual direct labour costs will be RM1,900,000. During the month of March, the company works on two jobs: Amber161 and Amber171. The summary data related to these two jobs are as follows.

Manufacturing Costs Incurred

Purchased RM108,000 of raw materials on account.

Factory labour of RM152,000 and RM8,000 for employer payroll taxes.

Manufacturing overhead of indirect materials and indirect labour for RM119,600.

Assignment of Costs

Direct materials: Job Amber161 RM54,000 and Amber171 RM42,000

Indirect materials: RM6,000

Direct labour: Job Amber161 RM104,000 and Job Amber171 RM52,000

Indirect labour: RM4,000

During the month, the company completed Job Amber161 and sold it on account for RM300,000. Job Amber171 was only partially completed.

Required:

a)Compute the predetermined overhead rate.

b)Journalize the March transactions.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

Students also viewed these Accounting questions

Question

=+What would you leave out to allow readers to share their wisdom?

Answered: 1 week ago