GHI Company constructed an equipment for its own use. The following was extracted from by the...

 

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GHI Company constructed an equipment for its own use. The following was extracted from by the chief accountant of the company: Materials Labor Total Factory Overhead Products manufactured 6,000,000 1,500,000 4,000,000 Equipment construction 1,875,000 375,000 14. Assuming the products manufactured were charged with an overhead of 200% of direct labor cost and any excess to the equipment, how much is the total cost of the equipment? 15. Assuming the factory overhead was allocated between products manufactured and equipment based on direct labor cost, how much is the total cost of the equipment? GHI Company constructed an equipment for its own use. The following was extracted from by the chief accountant of the company: Materials Labor Total Factory Overhead Products manufactured 6,000,000 1,500,000 4,000,000 Equipment construction 1,875,000 375,000 14. Assuming the products manufactured were charged with an overhead of 200% of direct labor cost and any excess to the equipment, how much is the total cost of the equipment? 15. Assuming the factory overhead was allocated between products manufactured and equipment based on direct labor cost, how much is the total cost of the equipment?

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Cost of Equipment Calculation Scenario 1 Overhead 200 of Direct Labor to Products Direct Labor Cost ... View the full answer