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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 121,300 and estimated factory overhead was $734,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. | ||||||||||
September 1, inventories: | ||||||||||
Materials | $9,800 | |||||||||
Work-in-process (All Job X) | $40,900 | |||||||||
Finished goods | $85,900 | |||||||||
Materials purchases | $134,200 | |||||||||
Direct materials requisitioned: | ||||||||||
Job X | $58,700 | |||||||||
Job Y | $43,200 | |||||||||
Direct labor hours: | ||||||||||
Job X | 5,400 | |||||||||
Job Y | 4,900 | |||||||||
Labor cost incurred: | ||||||||||
Direct labor | $6.60 | per hour | $67,980 | |||||||
Indirect labor | $17,500 | |||||||||
Factory supervisory salaries | $7,700 | |||||||||
Rental costs | ||||||||||
Factory | $9,100 | |||||||||
Administrative offices | $2,400 | |||||||||
Total equipment depreciation costs: | ||||||||||
Factory | $9,700 | |||||||||
Administrative offices | $2,000 | |||||||||
Indirect materials used | $15,400 | |||||||||
The total cost of Job X is: |
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