Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I just need help with the first question, i need to have manufacturing overhead calculated for the information presented above. Thank you! Chapter 2 -
I just need help with the first question, i need to have manufacturing overhead calculated for the information presented above. Thank you!
Chapter 2 - In-Class Activity Andrews, Inc. has the following information available concerning actual costs for the period ending December 31, 2016: 1. Factory utility costs - $7,500. 2. Advertising costs - $50,000. 3. Indirect material costs - $2,500. 4. Machine hours used: a. Job 250 - 2,500. b. Job 251 -2,000. c. Job 252 -4,000 5. Depreciation for factory machines - $80,000. 6. Indirect labor-$30,000. 7. Expected/estimated annual MOH cost-$200,000. 8. Expected/estimated annual machine hours - 8,000. 9. President's salary - $500,000 10. Production supervisor salary - $60,000. 11. Direct materials used - $70,000. 1. Compute actual MOH for 2016. 2. What quantity of factory utilities is necessary to complete any given job? 3. Assume that the consumption of factory utility costs bears some relation with the number of machine hours to complete the job (i.e., more machine hours necessitates more factory utility cost). Is it possible to wait until early 2019 and allocate factory utility costs to each job for 2018? 4. Assume you assign actual MOH in early 2019 for a job completed in early 2018. When will you know if this job is profitable or a loserStep 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