Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor
Question:
Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 93,000 and estimated factory overhead is $511,500. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished |
September 1, inventories
Materials inventory $ 8,400
Work-in-process inventory (All Job A) 33,000
Finished goods inventory 71,500
Material purchases 117,500
Direct materials requisitioned Job A 74,000 Job B 38,000
Direct labor hours Job A 5,100 Job B 4,400
Labor costs incurred
Direct labor ($7.50/hour) 71,250
Indirect labor 14,400
Supervisory salaries 6,900
Rental costs
Factory 7,900
Administrative offices 2,700
Total equipment depreciation costs
Factory 8,850
Administrative offices 2,950
Indirect materials used 12,900
1.What is the total cost of Job A? 2.What is the total factory overhead applied during September? |
| 3. | What is the overapplied or underapplied overhead for September? |
Expert Answer:
