ABC company had the following transactions and events during the ycar ended 31 March 2022. The company uses direct labor dollars as the allocation base. For the current year, the estimated overhead was $777,000 and estimated direct labor cost was $350,000. Actual costs incurred follows: a. Purchased raw materials on account, $567,000. b. 10% of raw materials purchased was requisitioned as indirect materials. c. Direct labor for production is $320,000, indirect labor is $125,000. d. Some costs for the company and their percentage for factory are shown below, with the remaining percentage for administration costs. Other costs for Total Percentage spent in factory the company Property tax 100,000 90% Utilities 90,000 89% Depreciation 150,000 75%

ABC company had the following transactions and events during the ycar ended 31 March 2022. The company uses direct labor dollars as the allocation base. For the current year, the estimated overhead was $777,000 and estimated direct labor cost was $350,000. Actual costs incurred follows: a. Purchased raw materials on account, $567,000. b. 10% of raw materials purchased was requisitioned as indirect materials. c. Direct labor for production is $320,000, indirect labor is $125,000. d. Some costs for the company and their percentage for factory are shown below, with the remaining percentage for administration costs. Other costs for Total Percentage spent in factory the company Property tax 100,000 90% Utilities 90,000 89% Depreciation 150,000 75%

Name: ABC company had the following transactions and events đuring the year
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Description: ABC company had the following transactions and events đuring the year ended 31 March2022. The company uses direct lahor dollars as the allocation base. For the current yeur, theestimated overhead was $777,000 and estimated direct labor cost was $350

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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