Johnson Inc. is a job order manufacturiing company that uses a predetermined ove
ID: 2544164 • Letter: J
Question
Johnson Inc. is a job order manufacturiing company that uses a predetermined overhead rate on direct labor hoursto apply overhead to iindivdual jobs. For the current year, estimated direct labor hours are 95,000 and estimated factory overhead is $617,500. The follwiong information is for September of the current year. Job A was completed during September, and HJob B was started but not finished.
September 1 inventories
Material inventory $7500
Work in process inventory (All Job A) $31,200
Finished goods inventory $67,000
Material purchases $104,000
Direct materials requisitioned
Job A $65000
Job B $33500
Direct labor hours
Job A $4200
Job B $3500
Labor Costs incurred
Direct labor($8.50/hour) $65450
Indirect labor $13500
Sueprvisory salaries $6000
Rental cost
Factory $7000
Administrative offices $1800
Total equipment depreciation costs
Factory 7500
Administrative office 1600
Indirect material uses 12000
Q.1 What is the total cost of Job A
Q2.What is the total factory overhead applied during September?
Q.3 What is the overapplied or underapplied for September?
Explanation / Answer
A1) total cost of job A Beginning WIP 31,200 Cost incurred during the month direct materials 65,000 direct labor (4200*8.5) 35700 overhead applied (4200*6.5) 27300 Total cost of job A 159,200 q2) total factory overhead applied total direct labor hours *6.5 (4200+3500)*6.5 50050 Q3) Actual manufacturing overhead indirect labor 13,500 Supervisory salaries 6,000 Factory rental cost 7,000 Factory depreciation cost 7,500 Indirect materials 12,000 Actual manufacturing overhead 46,000 applied overhead 50,050 overhead over applied 4,050
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