a. Raw materials requisitioned for use in production, S50.000 (80% direct and 20

Question

a. Raw materials requisitioned for use in production, S50.000 (80% direct and 20% indirect). on plant and equipment, $30,000. Three-fourths of the depreciation relates to factory equipment, and the remainder relates to selling and e equipment d. Costs for salaries and wages were incurred as follows 50,000 19,000 11,000 S 35,000 Indirect labor Sales comm e, insurance costs incurred, S5.000 (80% relates to factory operations, and 20% relates to selling and administrative activities). 9. Manuf f. Miscellaneous selling and administrative expenses incurred, $19,000 h. Goods that cost $140,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. i. Goods that had cost $130,000 to manufacture according to their job cost sheets were sold for $220,000. d was applied to production. The company applies overhead on the basis of 130% of direct labor cost. Required:

Explanation / Answer

Manufacturing OH applied= Direct labor cost*130% = 50000*130%= 65000

Manufacturing OH incurred:

As applied OH is less than actual OH, OH is under applied by 6100

Particulars Amount Explanation Indirect rawmaterials 10000 Raw material requested 50000*20% Factory utility costs 15600 Depreciation 22500 3/4th of total depreciation Indirect labor 19000 Insurance 4000 80% of total 71100 Applied OH 65000 Under applied OH 6100

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