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Tyson Company applies overhead costs to jobs using direct labor hours as the activity. The company's management developed following estimates for 2027: 2027 Estimates
Tyson Company applies overhead costs to jobs using direct labor hours as the activity. The company's management developed following estimates for 2027: 2027 Estimates Overhead cost Direct labor hours $810,000 90,000 Tyson Company operates two departments, the preparation department and the assembly department. During June, Tyson Company started and completed two jobs, Job # 104 and Job # 117. The company's cost records show the following information concerning the two jobs: JOB #104 Preparation Assembly Direct material cost $290 $180 Direct labor cost $120 $260 Direct labor hours 20 50 JOB #117 Preparation Assembly Direct material cost $450 $190 Direct labor cost $340 $220 Direct labor hours 30 10 Job # 104 consisted of 400 units and Job # 117 consisted of 300 units. During June, 160 units from Job # 104 were sold and 240 units from Job # 117 were sold. Tyson Company did not work on any other jobs during June. During June, Tyson Company's actual overhead cost totaled $860. Calculate Tyson Company's cost of goods sold for June after the overhead variance has been closed.
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