Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fadek Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.
Fadek Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 90,000 and estimated factory overhead is $540,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, Inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B Direct labor hours Job A Job B Labor costs incurred Direct labor ($8.00/hour) $ 8,100 32,400 70,000 113,000 71,000 36,500 4,800 4,100 71,200 14,100 6,600 7,600 2,400 Factory 8,400 Administrative offices 2,500 Indirect materials used 12,600 Based on the above information, what is the total cost of Job A? Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started