Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume that a company makes only one product, maintains no beginning or ending Inventories, and uses a standard costing system. The standard cost card
Assume that a company makes only one product, maintains no beginning or ending Inventories, and uses a standard costing system. The standard cost card for that product is shown below: Direct materials Direct labor Fixed manufacturing overhead Standard Quantity or Hours 3 pounds 2 hours 2 hours Standard Price or Rate 5 13.00 per pound Standard Cost $39.00 $ 16.00 per hour $ 6.00 per hour $32.00 $ 16.00 The company purchased 22,000 pounds of direct materials from its supplier at a cost of $12.50 per pound. The company used 22,000 pounds of direct material to start and complete 7,800 units of finished goods during the period. Its direct laborers worked 16,000 hours and were paid a total of $248,000. Based on this information, the total increase recorded in the Work in Process account related to fixed manufacturing overheed would be: Multiple Choke O O O O $128,000. $122,000. $124,800. $126,800
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started