Question
Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Budgeted Overhead Cost Budgeted Level
Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
| Overhead Cost Pool | Budgeted Overhead Cost | Budgeted Level for Cost Driver | Overhead Cost Driver | |||
| Materials handling | $ | 160,000 | 3,200 | pounds | Weight of materials | |
| Machine setup | 13,260 | 390 | setups | Number of setups | ||
| Machine repair | 1,380 | 30,000 | machine hours | Machine hours | ||
| Inspections | 10,560 | 160 | inspections | Number of inspections | ||
Requirements for Job #971 which manufactured 4 units of product:
| Direct labor | 20 | hours |
| Direct materials | 130 | pounds |
| Machine setup | 30 | setups |
| Machine hours | 15,000 | machine hours |
| Inspections | 15 | inspections |
If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
