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Required information [The following information applies to the questions displayed below.] Garcia, Inc., uses a job-order costing system for its products, which pass from
Required information [The following information applies to the questions displayed below.] Garcia, Inc., uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated, in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended: Machining Assembly Department Department Budgeted manufacturing overhead Actual manufacturing overhead Budgeted direct-labor cost $4,000,000 $3,136,000 4,280,000 3,040,000 (based on practical capacity) 1,500,000 5,600,000 Actual direct-labor cost 1,450,000 5,780,000 Budgeted machine hours (based on practical capacity) Actual machine hours 400,000 425,000 100,000 110,000 The data that follow pertain to job no. 775, the only job in production at year-end. Machining Assembly Department Department Direct material $24,500 $6,700 Direct labor $27,800 $58,700 Machine hours 360 150 Selling and administrative expense amounted to $2,500,000.
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