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Bright Star Incorporated is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.
Bright Star Incorporated 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 114,000 and estimated factory overhead was $695,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $ 9,000 Work-in-process (All Job X) 37,400 Finished goods 80,400 Materials purchases $ 125,000 Direct materials requisitioned: Job X $ 54,500 Job Y 40,000 Direct labor hours: Job X 5,000 Job Y 4,500 Labor costs incurred: Direct labor ($6.00 per hour) $ 57,000 Indirect labor 16,200 Factory supervisory salaries 7,200 Re
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