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Gergia Woods Inc manufactures furniture to customers specifications and uses
Dept 1 | Dept 2 | |
Direct Labor Cost | $300000 | $225000 |
Direct Labor hours | 20000 | 15000 |
Manufacturing Overhead | $420000 | $337500 |
Machine Hours | 12000 | 7500 |
Production of a batch of custome furniture ordered by City Furniture (job no.58) was started early in the year and completed 3 weeks later oin Jan 29. The records for thisjob show the following cost information.
Dept 1 | Dept 2 | |
Job order City Furniture | ||
Direct Materials cost | $10100 | $7600 |
Direct Labor Cost | $16,500 | $11,100 |
Direct Labor hours | 1100 | 740 |
Machine hours | 750 | 500 |
Selected additional information for January as follows:
Dept 1 | Dept 2 | |
Direct Labor Hours-month of January | 1600 | 1200 |
Machine hours -month of January | 1100 | 600 |
Manufacturing overhead incurred in January | $39,010 | $26,540 |
a. Compute the predetermined overhead rate for each department
b. What is the total cost of the furniture produced for City Furniture
c. Prepare the entries required to record the sale (on account) of the furniture to City Furniture. The sales price of theorder was $147,000
d. determine the over or underapplied overhead for each department at the end of January
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Determine the over or underapplied
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