During the year ended 30 June 2019, Beautiful Bottles Pty Ltd incurred the following costs. The company
Question:
During the year ended 30 June 2019, Beautiful Bottles Pty Ltd incurred the following costs.
The company charges factory overhead costs to work in process inventory and finished goods inventory, using an overhead application rate based on direct labour costs.
Required
(a) Determine the company’s overhead application rate.
(b) If the company’s ending finished goods inventory of $64 210 included $9300 of direct materials costs, determine the inventory’s labour and overhead costs.
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Step by Step Answer:
To determine the companys overhead application rate we need to divide the total factory overhead costs by the total direct labor costs incurred during ...View the full answer
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