Question
Required information The Foundational 15 [LO3-1, LO3-2, LO3-3, LO3-4] [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses
Required information
The Foundational 15 [LO3-1, LO3-2, LO3-3, LO3-4]
[The following information applies to the questions displayed below.]
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the companys inventory balances were as follows:
Raw materials | $ | 62,500 | |
Work in process | $ | 23,200 | |
Finished goods | $ | 36,900 | |
The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the companys predetermined overhead rate of $11.00 per direct labor-hour was based on a cost formula that estimated $440,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:
- Raw materials were purchased on account, $694,000.
- Raw materials used in production, $644,800. All of of the raw materials were used as direct materials.
- The following costs were accrued for employee services: direct labor, $390,000; indirect labor, $150,000; selling and administrative salaries, $246,000.
- Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $430,000.
- Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $290,000.
- Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
- Jobs costing $1,403,100 to manufacture according to their job cost sheets were completed during the year.
- Jobs were sold on account to customers during the year for a total of $2,827,500. The jobs cost $1,413,100 to manufacture according to their job cost sheets. What is the total amount of manufacturing overhead applied to production during the year?
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