Question
The following cost data relate to the manufacturing activities of Construct Limited last year: Manufacturing overhead costs: Property taxes $6,750 Utilities, factory 8,500 Indirect labor
The following cost data relate to the manufacturing activities of Construct Limited last year:
Manufacturing overhead costs: | |
Property taxes | $6,750 |
Utilities, factory | 8,500 |
Indirect labor | 10,125 |
Depreciation, factory | 26,250 |
Insurance, factory | 8,375 |
Total | $60,000 |
Other costs incurred: | |
Purchases of direct materials | $45,000 |
Direct labor cost | $48,150 |
Inventories: | |
Direct materials, January 1 | $5,600 |
Direct materials, December 31 | $7,750 |
Work in process, January 1 | $6,700 |
Work in process, December 31 | $8,200 |
The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The rate last year was $9.00 per machine-hour; a total of 7,000 machine-hours were recorded for the year.
Required:
- Calculate the amount of applied overhead. (1 marks)
- Calculate the amount and specify underapplied or overapplied overhead cost for the year. (2 marks)
- Prepare a schedule of Cost of Goods Manufactured for the year. Show all items. (12 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started