6. value 2.00 points MC Qu. 136 Use the following data to... Use the following d

Question

6. value 2.00 points MC Qu. 136 Use the following data to... Use the following data to compute total factory overhead costs for the month. Sales commissions Direct labor Indirect materials Factory manager salaries Factory supplies Indirect labor Depreciation-office equipment Direct materials Corporate office salaries Depreciation-factory equipment $11,900 40,700 16,300 8,300 10,100 7,400 6,100 41,600 43,600 8,600 O $151,000. O $133,000. O $50,700. O $91,400 O $61,600 References Multiple Choice MC Qu. 136 Use tie following data to... 20

Explanation / Answer

Mc Qu 136:

The amount of factory overhead is calculated with the use of following formula:

Factory Overhead = Indirect Labor + Factory Manager Salaries + Factory Supplies + Indirect Labor + Depreciation-Factory Equipment

______

Using the information provided in the question, we get,

Factory Overhead = 16,300 + 8,300 + 10,100 + 7,400 + 8,600 = $50,700 (which is Option C)

______

Mc Qu 70:

The work in process balance will comprise of direct material requisitioned, direct labor used and overhead applied during the month of September as the Job is yet not complete. The formula for calculating work in process balance is given below:

Work in Process Balance = Direct Material Requisitioned + Direct Labor Used + Overhead Applied

______

Using the information provided in the question, we get,

Work in Process Balance = 2,100 + 3,600 + 200%*3,600 = $12,900 (which is Option B)

______

Mc Qu 75:

The amount of applied overhead can be calculated with the use of formula for work/goods in process which is given below:

Goods in Process (Debit Balance) = Direct Material + Direct Labor + Overhead Applied

or Overhead Applied = Goods in Process (Debit Balance) - Direct Material - Direct Labor

______

Using the information provided in the question, we get,

Overhead Applied = 3,700 - 1,700 - 900 = $1,100 (which is Option C)

______

Mc Qu 71:

The total cost of the job after completion in October can be calculated with the use of following formula:

Total Cost of Job = Direct Material Requsitioned (September) + Direct Labor (September) + Overhead Applied (September) + Direct Material Requsitioned (October) + Direct Labor (October) + Overhead Applied (October)

______

Using the information provided in the question, we get,

Total Cost of Job = 2,700 + 4,200 + 100%*4,200 + 3,200 + 6,700 + 100%*6,700 = $27,700 (which is Option C)

______

Mc Qu 87:

The amount of overhead allocated can be calculated with the use of following formula:

Overhead Allocated = Direct Labor Cost*Overhead Application Rate

______

Using the information provided in the question, we get,

Overhead Allocated = 15,000*122% = $18,300 (which is Option C)

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