Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process: Job...

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Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process: Job 683 with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started duning the month of December. Data on costs added during the month are as follows: Job 683 Job 684 Job 685 Job 686 Job 687 Direct materials $11,000 $8,000 $31,400 $16,700 $6,000 Direct labor 21,000 6,000 12,300 8,450 2,500 Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process. Required: A. The actual overhead for December was $41,100. Calculate the variance. B. Calculate the sales price for Job 684, 42,300 C. Calculate the adjusted cost of goods sold for the month of December. D. If selling and administrative expenses for the month totaled $5,600, what is the company's operating income for December? Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process: Job 683 with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started duning the month of December. Data on costs added during the month are as follows: Job 683 Job 684 Job 685 Job 686 Job 687 Direct materials $11,000 $8,000 $31,400 $16,700 $6,000 Direct labor 21,000 6,000 12,300 8,450 2,500 Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process. Required: A. The actual overhead for December was $41,100. Calculate the variance. B. Calculate the sales price for Job 684, 42,300 C. Calculate the adjusted cost of goods sold for the month of December. D. If selling and administrative expenses for the month totaled $5,600, what is the company's operating income for December?

Answer rating: 100% (QA)

Solution A Variance 900 underapplied Calculated as Overhead appl... View the full answer