Spruce Company uses a job costing system. Spruce? Company\'s schedule of cost of
ID: 2395835 • Letter: S
Question
Spruce Company uses a job costing system. Spruce? Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.
Cost of goods manufactured
$ 124 comma 800$124,800
Cost of direct materials used
42 comma 40042,400
?($ 35.00$35.00
74 comma 90074,900
Work in process? inventory, August 1
15 comma 50015,500
Manufacturing overhead cost is allocated at the rate of
$ 23.00$23.00
per direct labor hour.
What is the amount of allocated manufacturing overhead costs for? August?
Cost of goods manufactured
$ 124 comma 800$124,800
Cost of direct materials used
42 comma 40042,400
Cost of direct labor?($ 35.00$35.00
per? hour)74 comma 90074,900
Work in process? inventory, August 1
15 comma 50015,500
Explanation / Answer
Direct labor hours = Direct labor cost/ cost per hour = 74900/35 = 2140
Allocated manufacturing overhead = DIrect labor hours (2140) * Overhead rate per hour (23) = 49220
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