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Johnson Company applies overhead to products using direct labor hours as the activity level. During 2019, Johnson Company had the following estimated costs: Direct materials
Johnson Company applies overhead to products using direct labor hours as the activity level. During 2019, Johnson Company had the following estimated costs: Direct materials Direct labor Advertising Rent on factory building Depreciation Indirect materials Sales commissions Production supervisor's salary Insurance on sales equipment CEO's salary ... $278,000 255,000 (15,000 hours expected) 37,000 38,000 60,000 20,000 40,000 50,000 18,000 95,000 The following additional information is available: 1. 30% of the depreciation relates to equipment in the administrative offices while 70% of the depreciation relates to equipment in the factory. 2. Direct laborers are paid $17 per hour. During 2019, Johnson Company began work on three jobs. Information relating to these three jobs appears below: direct materials direct labor hours Job #359 $98,000 4,700 Job #360 $75,000 6,000 Job #361 $91,000 5,800 By the end of 2019, job #360 and job #361 had been completed. Job #359 was not completed by the end of 2019. Additionally, by the end of 2019, job #361 had been sold while job #360 was not sold. Johnson Company had total actual overhead cost of $139,000 during 2019. Calculate the cost of goods sold reported by Johnson Company for 2019 after the overhead variance has been closed
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