Lamour Corporation is a job order costing company that uses activity-based costi
ID: 2556735 • Letter: L
Question
Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year.
?
Activity
Cost
Driver
Amount of driver
setups
$240,000
number of setups
6,000
purchasing
160,000
number of parts
20,000
other overhead
300,000
direct labor hours
80,000
?
The following information about the jobs was given for April.
?
?
Job 101
Job 102
Job 103
Job 104
Balance 4/1
$64,900
$40,770
$30,500
0
direct materials
54,000
37,900
25,000
11,000
direct labor
80,000
38,500
43,000
21,000
number of setups
40
10
30
200
number of parts
300
80
400
500
direct labor hours
5,000
2,400
5,200
1,200
?
By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process.
The cost of goods sold would consist of the costs of what jobs?
Job 102 + Job 103
Job 101 + Job 102 + Job 103 + Job 104
Job 101 + Job 104
Job 101 + Job 102 + Job 103
Activity
Cost
Driver
Amount of driver
setups
$240,000
number of setups
6,000
purchasing
160,000
number of parts
20,000
other overhead
300,000
direct labor hours
80,000
Explanation / Answer
On april 30 Job 102 and 103 completed and sold so when we calculate cost of goods sold then we consist the cost of job 102+job 103.
so answer is a) Job 102 + Job 103
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