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How do you get $390,000 for manufacturing overhead? In Class Conting problen SnowCaps, Inc employs AlapC 2) w //e. Nam. costing system and uses normal

How do you get $390,000 for manufacturing overhead? image text in transcribed
In Class Conting problen SnowCaps, Inc employs AlapC 2) w //e. Nam. costing system and uses normal co tin Work in Finished goods 21,000 The company applies overhead based on direct lbor hours. Al vec it would work 900 hours and incur $360,000 ip macu of dhe year the begianing of the yean, the company estissated tha The following transactions were reconded for the year 1. Materials were purchased, $200,000 were used in production, $185,000 (315 3. The following employee costs were 151.000 dinecs and 534,000 indireet) $230,000 incurred: direct salaries, S110,000 reeincurred, s70,000 (90% to selling and administrstive activities related to selling 4 Selling costs, $136,000 s. Utility bills were i and S19,000 is Maiad lo selling,000 of which S7o,000 is relaved to fcteory operations Maintenance costs were incurred in the related to factory operations, and the remainder and administrative activities) Depreciation for the year was 6. and the remainder related to onbuildings, S120.000 (85% related to factory operations. buildinp 8. Rental cost incurred was 975 direct labor hours selling and administrative facilities). 9. Manufacturing overhead 10. 1O Sales for th ows appliod. The actual level of activity for the year the year totaled $1,200,000 ) What was the predetermined overhead rate? b) How much overhead was applied to Work in Process in 2017? c) What was the ending Materials balance? 7 ysoro d) Compute the cost of goods manufactured. 22 01, ST

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