Q3: The following cost data during the just completed year relate to the manufac
ID: 2573110 • Letter: Q
Question
Q3: The following cost data during the just completed year relate to the manufacturing activities of Chang Company the Actual manufacturing overhead costs Indirect labor $15,000 Property taxes, factory 130,000 8,000 70,000 240,000 Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred Other costs charged to jobs: 10,000 $473,000 Direct materials $375,000 Direct labor cost $60,000 Inventories Work in process, beginning $40,000 Work in process, ending $70,000 The company uses a predetermined overhead rate to apply overhead cost to production The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for the year Find a Compute the amount of under-applied or over-applied overhead cost for the year. b. Determine the cost of goods manufactured for the year using the indirect methodExplanation / Answer
a) Actual manufacturing overhead costs=473000
Applied overhead=25*19400=485000
and it is over applied by amount =485000-473000=12000
b)Cost of goods manufactured= Direct materials+ Direct labour cost+applied overhead+Beg WIP-ending WIP
Direct materials=375000-15000=360000
Direct labour=60000
applied overhead=485000
=360000+60000+485000+40000-70000
=875000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.