XYZ Co. is an advertising firm that uses job order costing….
XYZ Co. is an advertising firm that uses job order costing. Its direct materials consist of branded merchandise (t-shirts, coffee mugs, etc.) that it creates for clients. Direct labor consist of marketer’s salaries that work on the client’s account. Overhead consist of costs such as depreciation, utilities and insurance related to the headquarters office. XYZ computes its predetermined overhead rate annually based on direct labor hours. At the beginning of the year, XYZ estimated 40,000 direct labor hours would be required for the period’s estimated level of client service. The company also estimated $320,000 of fixed overhead costs for the coming period and variable overhead of $0.50 per direct labor hour. During the year the company started and completed the Flagler Co. engagement. The following information was available for this job: Direct materials $2,600 Direct labor $12,800 Direct labor hours worked 640 Compute the total job cost for the Flagler Co. engagement.
Read DetailsThe predetermined overhead rate for Duval Inc. is $12 per ma…
The predetermined overhead rate for Duval Inc. is $12 per machine-hour, underapplied overhead is $4,000, and the amount of machine-hours is 1,800. What is the actual amount of total manufacturing overhead incurred during the period?
Read DetailsDuval Corporation provided the following data for the just c…
Duval Corporation provided the following data for the just completed month’s operations. Beginning Ending Raw materials $12,000 $11,000 Work in process $43,000 $36,000 Finished goods $20,000 $27,000 Direct material purchases $ 123,000 Direct materials used in production $ 185,000 Selling expenses $ 46,000 Direct labor cost $ 101,000 Administrative expenses $ 10,000 Actual manufacturing overhead costs $ 239,000 Manufacturing overhead applied to work in process $ 247,000 What was Cost of Goods Manufactured for the month?
Read DetailsA1A Corporation uses a predetermined overhead rate based on…
A1A Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $ [DM] Direct labor $ [DL] Rent on factory building $ [rent] Sales commissions $ [comm] Depreciation, factory equipment $ [Fdep] Indirect labor $ [IL] Depreciation, administrative office equipment $ [Adep] A1A estimates that [base] direct labor-hours will be worked during the year. The predetermined manufacturing overhead rate per hour will be:
Read DetailsJAX Co. manufactures and sells a single product. A partially…
JAX Co. manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 50,000 to 100,000 units is given below: Units Produced and Sold 50,000 75,000 Total costs: Variable costs $220,000 [Q1] Fixed cost $400,000 [Q2] Total cost $640,000 Costs per unit: Variable costs [Q3] [Q5] Fixed costs [Q4] [Q6] Fill in the blanks in the schedule above (enter your answer as a number without any formatting, for example $360,000 would be entered as 360000 and $8.25 would be entered as 8.25; round the cost per unit to two decimal points)
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