Spalding has a job order cost system. The following debits (credits) appeared in
ID: 2336923 • Letter: S
Question
Spalding has a job order cost system. The following debits (credits) appeared in the work in process account for the month of August:
Date
Description
Amount
Aug 1
Opening balance
$ 9106
Aug 31
Direct materials
62254
Aug 31
Direct labour
39493
Aug 31
Manufacturing Overhead
31594.4
Aug 31
To finished goods
(74433)
Job # 698, the only job still in process at the end of August has been charged with direct labour of $ 7730. What was the amount of direct materials charged to Job # 698?
Select one:
a. $ 60284
b. $ 55990
c. $ 46370
d. $ 54100
DeShannon Company applies overhead to production based on direct labour hours. Data for the most current year are as follows:
Estimated
Actual
Direct labour hours
631462
522038
Manufacturing overhead
$ 738646
$ 686007
The manufacturing overhead for the past year was over/under-applied by (note that a negative number means that overhead was under-applied and a positive number means it was over-applied):
Select one:
a. $ 75359
b. $ 150717
c. $ -150717
d. $ -75359
Spalding has a job order cost system. The following debits (credits) appeared in the work in process account for the month of August:
Date
Description
Amount
Aug 1
Opening balance
$ 9106
Aug 31
Direct materials
62254
Aug 31
Direct labour
39493
Aug 31
Manufacturing Overhead
31594.4
Aug 31
To finished goods
(74433)
Job # 698, the only job still in process at the end of August has been charged with direct labour of $ 7730. What was the amount of direct materials charged to Job # 698?
Explanation / Answer
1 Overhead rate = 31594.4/39493= 80% Cost of Job # 698 = (9106+62254+39493+31594.4)-74433= $68014.4 Amount of direct materials charged to Job # 698 = 68014.4-7730-(7730*80%)= $54100 Option D is correct 2 Overhead rate = 738646/631462= $1.1697 Overhead applied = 522038*1.1697 = $610648 Under-applied overhead = 610648-686007= $-75359 Option D is correct
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