Tillman Corporation uses a job-order costing system and has two production departments, M and A. Budgeted manufacturing
Fantastic news! We've Found the answer you've been seeking!
Question:
Tillman Corporation uses a job-order costing system and has two production departments, M and A. Budgeted manufacturing costs for the year are:
Department M | Department A | |
Direct materials | $700,000 | $100,000 |
Direct labour | 200,000 | 800.000 |
Manufacturing overhead | 600.000 | 400.000 |
Actual material and labor costs charged to Job No. 432 during the year were as follows:
direct material | $25,000 | |
Direct labour: | ||
Department M | $8,000 | |
Department A | 12,000 | |
20,000 | ||
45.000 |
Tillman applies manufacturing overhead to production orders on a direct labor cost basis using predetermined departmental rates at the beginning of the year based on the annual budget.
Find the total annual manufacturing costs associated with Job No. 432.
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Posted Date: