Question

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Job 101 has a direct materials cost of $800 and a total manufacturing cost of $3,000. Overhead is applied to jobs at a rate of 150 percent of direct labor cost.

What is the prime cost?

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Walnut Systems produces two different products, Product A, which sells for $124 per unit, and Product B, which sells for $196 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows:    

	Cost		Usage by Product A			Usage by Product B
Design (Engineering Hours)	$	103,790		513			907
Machining (Machine Hours)	$	241,385		2,318			3,214
Inspection (Batches)	$	81,883		298			515

Calculate the activity rate for design. Round to 2 decimal places

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Leonard Company has the following costs in its manufacturing company

Factory rent	$3,963
Direct labor	5,790
Indirect materials	584
Direct materials used	6,557
Sales commissions	2,630
Factory manager’s salary	2,951
Advertising	642

What are Leonard Company's conversion cost?

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Anderson Inc incurred $90,264 in direct labor costs (5,244 hours) and $16,486 in supervision costs (paid in cash).
Debit to Manufacturing Overhead would be $_____________

Answer 1

Answer

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