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Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For
Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 133,000 and estimated factory overhead was $1,064,000. The following information was for September. Job X was completed during September, while Job Y was started but not finished.
September 1, inventories: | ||||
Materials | $ | 11,000 | ||
Work-in-process (All Job X) | 39,300 | |||
Finished goods | 82,300 | |||
Materials purchases | $ | 144,000 | ||
Direct materials requisitioned: | ||||
Job X | $ | 56,400 | ||
Job Y | 41,900 | |||
Direct labor hours: | ||||
Job X | 6,900 | |||
Job Y | 6,400 | |||
Labor costs incurred: | ||||
Direct labor ($7.90 per hour) | $ | 105,070 | ||
Indirect labor | 18,100 | |||
Factory supervisory salaries | 9,100 | |||
Rental costs: | ||||
Factory | $ | 10,300 | ||
Administrative offices | 4,100 | |||
Total equipment depreciation costs: | ||||
Factory | $ | 11,000 | ||
Administrative offices | 3,800 | |||
Indirect materials used | $ | 16,300 | ||
The total cost of Job X is:
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$205,410.
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$149,000.
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$178,500.
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$139,100.
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$190,770.
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