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Business, 06.10.2019 01:30 squawk1738
The company applies overhead cost to jobs on the basis of direct labor-hours. for the current year, the company’s predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. the following transactions were recorded for the year: raw materials were purchased on account, $510,000. raw materials used in production, $480,000. all of of the raw materials were used as direct materials. the following costs were accrued for employee services: direct labor, $600,000; indirect labor, $150,000; selling and administrative salaries, $240,000. incurred various selling and administrative expenses (e. g., advertising, sales travel costs, and finished goods warehousing), $367,000. incurred various manufacturing overhead costs (e. g., depreciation, insurance, and utilities), $500,000. manufacturing overhead cost was applied to production. the company actually worked 41,000 direct labor-hours on all jobs during the year. jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year. jobs were sold on account to customers during the year for a total of $2,800,000. the jobs cost $1,690,000 to manufacture according to their job cost sheets. 4. what is the total amount of manufacturing overhead applied to production during the year
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The company applies overhead cost to jobs on the basis of direct labor-hours. for the current year,...
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