Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Raw materials Work in process Finished goods $ 72,500 $ 18,200 $ 46,500 The company applies overhead cost to jobs on the basis of direct

image text in transcribed
Raw materials Work in process Finished goods $ 72,500 $ 18,200 $ 46,500 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $15.50 per direct labor-hour was based on a cost formula that estimated $620,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $628,000. b. Raw materials used in production, $598.000. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services: direct labqr $570,000; Indirect labor, $150,000: selling and administrative salaries, $266,000, d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing). $418,000. e, incurred various manufacturing overhead costs (eg. depreciation, Insurance, and utilities), $470,000. 1. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor hours on all Jobs during the year 9. Jobs costing $1.717.900 to manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3.225,000. The jobs cost $1.727,900 to manufacture according to their job cost sheets 8. What is the total amount of actual manufacturing overhead cost incurred during the year

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

Step: 3

blur-text-image

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

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappett

23rd edition

1259536351, 978-1259536359

Students also viewed these Accounting questions