Question 6 (of 18) value: 0.64 points Fairfield Company\'s payroll costs for the

Question

Question 6 (of 18) value: 0.64 points Fairfield Company's payroll costs for the most recent month are summarized here: Description Total Cost Item Hourly labor wages 890 hours $30 per hour 180 hours for Job 101 320 hours for Job 102 390 hours for Job 103 $ 5,400 9,600 Factory supervision Production engineer Factory janitorial work Selling, general, and administrative 11,700 $26,700 4,750 7,900 1,400 8,900 salaries Total payroll costs 1. Calculate how much of the labor costs would be added to the following accounts: a. Work in Process Inventory b. Manufacturing Overhead cl Selling, General, and Administrative Expenses

Explanation / Answer

Solution :

a. work in process inventory = Hourly labour wages

= $26,700

b. Manufacturing overhead = Factory Supervision + Production engineer + factory janitorial work

= $4,750 + $7,900 + $1,400

= $14,050

c. Selling, general, administative Expense = Salaries = $8,900

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