Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnson Incorporated is a job order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual

image text in transcribed

Johnson 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 95,000 and estimated factory overhead is $617,500. 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 (A11 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 ($8.50/hour)) Indirect labor $ 7,500 31,200 67,000 104,000 65,000 33,500 4,200 3,500 65,450 13,500 6,000 Factory 7,000 Administrative offices) 1,800 Total equipment depreciation costs Factory 7,500 Adeinistrative offices 1,600 12,000 Supervisory salaries Rental costs Indirect materials used Required: 1. What is the total cost of Job A? 2. What is the total factory overhead applied during September? 3. What is the overapplied or underapplied overhead for September?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions