Question
The following information was drawn from the accounting records of Marlin Manufacturing Co. Product 1 Product 2 Product 3 Direct Material Cost $ 90,000 $
The following information was drawn from the accounting records of Marlin Manufacturing Co.
| Product 1 | Product 2 | Product 3 | |||||||
| Direct Material Cost | $ | 90,000 | $ | 95,000 | $ | 100,000 | |||
| Direct Labor Cost | $ | 160,000 | $ | 170,000 | $ | 180,000 | |||
| Direct Labor Hours | 3,800 | hours | 4,400 | hours | 4,600 | hours | |||
Factory overhead is estimated to be $459,000 and is applied on a basis of direct labor dollars. This overhead cost is not traceable to any particular product. Factory overhead allocated to Product 2 is
Multiple Choice
-
$12,600
-
$144,000
-
$153,000
-
$153,800
-------------
2)
The following information was drawn from the accounting records of Marlin Manufacturing Co.
| Product 1 | Product 2 | Product 3 | |||||||
| Direct Material Cost | $ | 90,000 | $ | 95,000 | $ | 100,000 | |||
| Direct Labor Cost | $ | 160,000 | $ | 170,000 | $ | 180,000 | |||
| Direct Labor Hours | 3,800 | hours | 4,400 | hours | 4,600 | hours | |||
Factory overhead is estimated to be $459,000 and is applied on a basis of direct labor dollars. This overhead cost is not traceable to any particular product. The total cost of Product 1 is
Multiple Choice
-
$144,000
-
$394,000
-
$405,978
-
$436,237
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Auditing Trust And Governance Developing Regulation In Europe
Authors: Reiner Quick, Stuart Turley, Marleen Willekens
1st Edition
0415448905, 9780415448901
