Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Additional Information Job 306 Predetermined overhead rate Overhead applied $ 35,400 26,400 16,400 306 151,000 91,400 ? Finished (sold) Required: 1. Determine the amount of overhead applied to each job in April. 307 Job 307 $ 41,400 24,400 15,400 236,000 166,000 a. Raw Materials Inventory has a March 31 balance of $86,400. b. Raw materials purchases in April are $516,000, and total factory payroll cost in April is $379,000. c. Actual overhead costs incurred in April are indirect materials, $54,000; indirect labor, $27,000; factory rent, $ factory utilities, $23,000; and factory equipment depreciation, $55,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $651,000 cash in April. Finished (unsold) Job 308 308 $ 116,000 121,000 ? In process April Total
Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Additional Information Job 306 Predetermined overhead rate Overhead applied $ 35,400 26,400 16,400 306 151,000 91,400 ? Finished (sold) Required: 1. Determine the amount of overhead applied to each job in April. 307 Job 307 $ 41,400 24,400 15,400 236,000 166,000 a. Raw Materials Inventory has a March 31 balance of $86,400. b. Raw materials purchases in April are $516,000, and total factory payroll cost in April is $379,000. c. Actual overhead costs incurred in April are indirect materials, $54,000; indirect labor, $27,000; factory rent, $ factory utilities, $23,000; and factory equipment depreciation, $55,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $651,000 cash in April. Finished (unsold) Job 308 308 $ 116,000 121,000 ? In process April Total
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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