Question
Chico fabrication manufactures custom chairs for offices. It uses actual costing system for indirect cost with two direct cost categories (direct materials and direct manufacturing
Chico fabrication manufactures custom chairs for offices. It uses actual costing system for indirect cost with two direct cost categories (direct materials and direct manufacturing labor). All indirect costs are collected in one pool and allocated based direct labor hours. Giving the following information for the period calculate the total cost in a job for Beatnik Caf: Direct material costs $3,800, Direct labor manufacturing labor hours 200, Direct labor hour rate $20 per hour.
For the year data: Actual Manufacturing Overhead costs $992,000, Budgeted Manufacturing Overhead costs $1,000,000
Actual Direct manufacturing labor hours 31,000, Budgeted Direct manufacturing labor hours 33,000
Job costs Beatnik caf (Input in the whole number without any commas or dollar signs)
Material (a)
Direct labor (b)
Manufacturing Overhead Allocated (c)
Step by Step Solution
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Step: 2
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