Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
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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 | 13,200 | 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:
a. $1,020.
b. $990.
c. $6,400.
d. $3,460.
e. $1,600.
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
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