Answer each question independently.
Required:
1. Mirage Mirror’s predetermined overhead rate for manufacturing overhead is $18 per direct labour-hour. The direct labour rate is $24 per hour. If the budgeted direct labour cost was $300,000, what was the budgeted manufacturing overhead?
2. Zion wants to compute the total cost for preparing a corporate tax return for his client. His labour is the only direct cost at $65 per hour. He estimates monthly overhead costs at $7,500 for 150 direct labour-hours. If the tax return requires 13 hours to prepare, what will be the total direct cost, indirect cost, and job cost, respectively?
3. Kyle had the following account balances at the end of this year:
Direct materials inventory……………………………………$1,000
Work in process………………………………………………………..680
Finished goods…………………………………………………………450
Manufacturing overhead control………………………………122 credit
Cost of goods sold……………………………………………………800
Assuming that over- or underapplied overhead is written off to cost of goods sold, prepare the appropriate journal entry, and compute the adjusted balance in the cost of goods sold account.
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