Beckner Inc. is a job-order manufacturer. The company 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 150,000 and estimated factory overhead is $1,140,000. The following information is for September. Job X was completed during September, while Job Y was started but not finished.
September 1, inventories: | ||||
Materials | $ | 25,700 | ||
Work-in-process (All Job X) | 55,100 | |||
Finished goods | 107,300 | |||
Materials purchases | $ | 174,000 | ||
Direct materials requisitioned: | ||||
Job X | $ | 75,700 | ||
Job Y | 69,700 | |||
Direct labor hours: | ||||
Job X | 8,700 | |||
Job Y | 7,200 | |||
Labor costs incurred: | ||||
Direct labor ($7.70 per hour) | $ | 122,430 | ||
Indirect labor | 50,100 | |||
Factory supervisory salaries | 12,800 | |||
Rental costs: | ||||
Factory | $ | 11,000 | ||
Administrative offices | 4,900 | |||
Total equipment depreciation costs: | ||||
Factory | $ | 12,100 | ||
Administrative offices | 4,500 | |||
Indirect materials used | $ | 30,400 | ||
The total factory overhead applied during September is:
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