Swifty Company manufactures custom-order furniture. During 2020, actual manufacturing overhead totaled $722000. Based on the 2020 results,
Question:
Swifty Company manufactures custom-order furniture. During 2020, actual manufacturing overhead totaled $722000. Based on the 2020 results, and projected production for 2021, management prepared the 2021 budget and estimated that manufacturing overhead would total $589200. The estimated number of direct labor hours for 2021 is 49100, and the estimated amount of direct labor cost is $1050000. The company plans to use direct labor hours as the basis to allocate overhead to jobs. During May and June 2021, employees worked on the following four jobs:
Monthly data | Job X43 | Job X87 | Job Z22 | Job A33 | ||||
---|---|---|---|---|---|---|---|---|
May | ||||||||
Direct materials | $86300 | $71400 | $44700 | $38400 | ||||
Direct labor cost | $101800 | $91200 | $78300 | $52500 | ||||
Direct labor hours | 5030 | 4560 | 3930 | 2700 | ||||
June | ||||||||
Direct materials | $24400 | $40400 | $34600 | $23700 | ||||
Direct labor cost | $27800 | $53000 | $62900 | $32200 | ||||
Direct labor hours | 1600 | 2700 | 3100 | 1700 |
Job X87 was started in May and delivered to the customer in late June. What is the cost of Job X87?
$Unresolved
$240300
$363520
$256000
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Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd Canadian edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang-Hsuan Chen, Gail Cook