Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Options Futures And Other Derivatives

Authors: John Hull

9th Global Edition

1292212896, 9781292212890

More Books

Students also viewed these Accounting questions

Question

What is the relationship between humans?

Answered: 1 week ago

Question

What is the orientation toward time?

Answered: 1 week ago