Question
Enochiz Enterprises produces a highly customized product in its Tacoma factory. The company distinguishes itself with its quick completion time of all custom orders. When
Enochiz Enterprises produces a highly customized product in its Tacoma factory. The company distinguishes itself with its quick completion time of all custom orders. When a customer order is received, materials are requisitioned from the warehouse and the production started within 7 hours of the order time. Direct labor employees are paid at a rate of 540 per hour and manufacturing overhead is applied to jobs based on direct labor hours. The budgeted total overhead for the period was $30,000 based on 600 budgeted direct labor hours.
During the month of July 2023, the following activity occurred:
Beginning work in process: Zero Jobs Started during the period
Job 1200
Direct Materials
$9,000
Direct Labor
$ 7,680
Job 1201
$12,000
$11,520
Job 1202
$
$5,000
3,840
Job 1203
$8,000
$ 2,400
All jobs were completed by the end of the month except job 1203 which is still in work-in-process.
Total actual Manufacturing Overhead for the entire month of July amounted to $34,000.
REQUIRED:
1. Compute the total cost of job 1200
2. Compute the overhead applied to job 1200
3. Compute the total cost of job 1201
4. Compute the predetermined overhead rate
5. Compute the overapplied or under applied overhead for the period
6. Compute the total cost of the ending work in process (Job 1203)
7. Compute the overhead applied to job 1201
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