Product Usage Activity Set ups Moves Direct Labor Hours Regular 18 460 18000 Deluxe 27 520 12000 Units Produced Direct Labor/Unit Direct Material/Unit Regular 1200 $45 $25 Deluxe 750 $63 $69 1. Steve's Great Furniture Manufacturing company, maker of the famous two legged chairs and tables, recently lost most of their accounting records when a fire destroyed their workshop and main office. Luckily their inventory warehouse wasn't impacted by the fire. Their ending inventories were: $20,000 in raw materials, $50,000 in WIP, and $120,000 in finished goods. As could be expected, Steve could remember the beginning inventory in each of the categories. The beginning values were: $25,000 in raw materials, $60,000 in WIP, and $30,000 in finished goods. Steve contacted their supplier who was able to tell them they'd purchased $240,000 of wood for the tables and chairs during the period. Contacting the bank, Steve found they paid wages of $48,000 which was usually 50% of the total labor cost when considering taxes and benefits. Steve needs help calculating the following: a. Direct Materials used in production b. Direct Labor and Overhead incurred during the month. Overhead was applied at a rate of 175% of Direct Labor cost c. The cost of Goods Manufactured during the period d. Goods Available for sale during the period e. The month Cost of Goods Sold f. And, just for grins, the cost of manufacturing for the month. 2. Steve Appliance Repair Services (SARS) incurs a lot of overhead. To ensure that overhead is considered in bidding repair jobs, Steve uses a normal overhead rate. Overhead is applied to each job bid based on the estimated labor hours that the job will require. This year Steve is estimating that he'll incur $380,000 of overhead and charge jobs for 4,000 labor hours. In bidding on a recent repair job Steve estimated that he'd incur $50,000 of material and $14,250 of labor at $150 per hour. How much did Steve bid on the job assuming he expects a 40% markup