Question
Concord Company manufactures custom-order furniture. During 2020, actual manufacturing overhead totaled $714000. Based on the 2020 results, and projected production for 2021, management prepared the
Concord Company manufactures custom-order furniture. During 2020, actual manufacturing overhead totaled $714000. Based on the 2020 results, and projected production for 2021, management prepared the 2021 budget and estimated that manufacturing overhead would total $1388800. The estimated number of direct labor hours for 2021 is 49600, and the estimated amount of direct labor cost is $960000. The company plans to use direct labor hours as the basis to allocate overhead to jobs. During May and June 2021, employees worked on the following four jobs:
Monthly data | Job X43 | Job X87 | Job Z22 | Job A33 | ||||
---|---|---|---|---|---|---|---|---|
May | ||||||||
Direct materials | $87000 | $71400 | $43800 | $38500 | ||||
Direct labor cost | $101100 | $90500 | $78400 | $51900 | ||||
Direct labor hours | 5120 | 4580 | 3970 | 2660 | ||||
June | ||||||||
Direct materials | $23000 | $40200 | $35600 | $24400 | ||||
Direct labor cost | $27900 | $51900 | $62100 | $32500 | ||||
Direct labor hours | 1600 | 2600 | 3100 | 1660 |
Job X87 was started in May and delivered to the customer in late June. What is the cost of Job X87?
A) $455040
B) $508520
C) $254000
D) $239000
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