Badour Inc. is a custom manufacturer. The company uses a predetermined overhead rate based on direct labor
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Question:
Badour Inc. is a custom manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 114,000 and estimated factory overhead were $695,400.
The following information is for September. Job X was completed during September, while Job Y was started but not finished.
September 1, inventories: | |
Materials | $9,000 |
Work in process (All work X) | 37,400 |
Finished products | 80.400 |
Purchasing of materials | $125,000 |
Requested Direct Materials: | |
work X | $54,500 |
Work and | 40.000 |
Direct labor hours: | |
work X | 5,000 |
Work and | 4500 |
Labor costs incurred: | |
Direct labor ($6.00 per hour) | $57,000 |
indirect work | 16,200 |
Factory Supervisor Salaries | 7,200 |
Rental costs: | |
Factory | $8,400 |
administrative offices | 2,200 |
Total depreciation costs of the equipment: | |
Factory | $9,000 |
administrative offices | 1,900 |
Indirect materials used | $14,400 |
Calculate the total cost of work X
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