Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the companys inventory balances were as follows: Raw materials $ 63,500 Work in

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the companys inventory balances were as follows:

Raw materials $ 63,500
Work in process $ 32,000
Finished goods $ 36,000

The company applies overhead cost to jobs using direct labor-hours. For this year, the companys predetermined overhead rate of $13.00 per direct labor-hour was based on a cost formula that estimated $520,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded this year:

  1. Raw materials were purchased on account, $584,000.
  2. Raw materials used in production, $537,600. All of of the raw materials were used as direct materials.
  3. The following costs were accrued for employee services: direct labor, $470,000; indirect labor, $150,000; selling and administrative salaries, $249,000.
  4. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $464,000.
  5. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $370,000.
  6. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
  7. Jobs costing $1,478,700 to manufacture according to their job cost sheets were completed during the year.
  8. Jobs were sold on account to customers during the year for a total of $3,367,500. The jobs cost $1,488,700 to manufacture according to their job cost sheets.

8. What is the total actual manufacturing overhead cost incurred for this year?

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

Auditing And Accounting Cases Investigating Issues Of Fraud And Professional Ethics

Authors: Jay Thibodeau, Deborah Freier

3rd Edition

0078110815, 9780078110818

More Books

Students also viewed these Accounting questions

Question

What are the differences between dismissal and discharge?

Answered: 1 week ago