FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Kalp Corporation has two production departments, Machining and Finishing. The company uses a
Machining Finishing
Machine-hours 19,000 12,000
Direct labor-hours 2,000 8,000
Total fixed manufacturing overhead cost $ 136,800 $ 69,600
Variable manufacturing overhead per machine-hour $ 1.80
Variable manufacturing overhead per direct labor-hour $ 3.20
During the current month the company started and finished Job K928. The following data were recorded for this job:
Job K928: Machining Finishing
Machine-hours 90 10
Direct labor-hours 30 50
Direct materials $ 775 $ 415
Direct labor cost $ 630 $ 1,050If the company marks up its
$4,275.00
$855.00
$5,130.00
$5,643.00
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