Question

1. A company has the following information for Job Alpha during July:

Units produced	257
Actual materials used	1,722	lbs.
Actual materials cost	$         5.85	per lb.
Actual labor hours incurred	771
Actual labor rate	$      14.25	per hour
Work in process, July 1	$      4,000
Work in process, July 31	$             -

The company applies manufacturing overhead to jobs based on direct labor hours.

Additional information for the company in July is as follows:

Total estimated labor hours	2,170
Standard materials per unit	7	lbs.
Standard materials cost	$         5.50	per lb.
Standard labor hours per unit	2.80
Standard labor rate	$      15.00	per hour
Standard variable overhead	$         3.00	per labor hour
Standard fixed overhead	$         2.00	per labor hour
*based on 35,000 labor hours
Actual total output in units	755
Actual total labor hours	2,454
Actual variable overhead	$         3.40	per labor hour
Actual total fixed overhead	$      4,040

1. Calculate the company’s total estimated overhead for July (2 points):
2. If the company uses a normal costing system, calculate the costs incurred by Job Alpha in July (3 points):
3. Calculate the total cost of Job Alpha using a normal costing system:
4. Calculate the materials flexible budget for Job Alpha in July:

Answer 1