The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct labor cost:
Question:
The following information pertains to Trenton Glass Works for the year just ended.
Budgeted direct labor cost: 75000 hours (practical capacity) at $16 per hour
Actual direct labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 435,000
Actual manufacturing overhead:
Depreciation ............................................$231 .000
Property taxes ............................................ 21 .000
Indirect labor ............................................... 82,000
Supervisory salaries ................................. 200,000
Utilities ........................................................ 59,000
Insurance ................................................... 30,000
Rental of space ........................................ 300,000
Indirect material (see data below) .......... 79,000
Indirect material:
Beginning Inventory, January 1 .............. 48,000
Purchases during the year ...................... 94,000
Ending inventory, December31 ............. 63.000
Required:
1. Compute the firm has predetermined overhead rate, which is based on direct-labor hours.
2. Calculate the over applied or under applied overhead for the year.
3. Prepare a journal entry to close out the Manufacturing Overhead account into Cost of Goods Sold.
Ending InventoryThe ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Actual selling and administrative expense although given in the exercise is irre...View the full answer
