Big Tree Inc. uses a job order costing system and worked only on Job 302-5F during the current period. 

Job 302-5F was sold for $529,000. 

The following information pertains to costs incurred for Job 302-5F. 

Additional Facts 

                                     Account Name                                          $ Amount 

                                      Direct materials                                        $100,000 

                                       Indirect materials                                     $45,000 

                                       Direct labor                                               $150,000 

                                        Indirect labor                                            $70,000 

                                Depreciation of factory machinery               $18,000 

                                        Factory supplies                                       $6,000 

Overhead rate 90% of direct labor 

After adjusting for the amount of overapplied or underapplied overhead, determine the amount of gross profit earned during the year.

 Five responses are required.

Clearly indicate your responses: 

 1.) The $ amount of actual overhead incurred is  

2.) The $ amount of overhead that is applied is 

3.) Indicate whether the overhead is Overapplied or Underapplied

4.) The $ amount of overhead that is Overapplied or Underapplied is 

5.) The $ amount of Gross Profit or (Loss)  

Answer rating: 100% (QA)

To calculate the required amounts well follow these steps Calculate the actual overhead incurred Act... View the full answer