! Required information [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $50,000 $ 30,800 $ 43,200 The company applies overhead cost to jobs using direct labor-hours. For this year, the company's predetermined overhead rate of $12.00 per direct labor-hour was based on a cost formula that estimated $480,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded this year: a. Raw materials were purchased on account, $696,000. b. Raw materials used in production, $655,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $430,000; indirect labor, $150,000; selling and administrative salaries, $251,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $411,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $330,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. g. Jobs costing $1,521,800 to manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3,255,000. The jobs cost $1,531,800 to manufacture according to their job cost sheets. 4. What is the total manufacturing overhead applied to production for this year? Manufacturing overhead applied
! Required information [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $50,000 $ 30,800 $ 43,200 The company applies overhead cost to jobs using direct labor-hours. For this year, the company's predetermined overhead rate of $12.00 per direct labor-hour was based on a cost formula that estimated $480,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded this year: a. Raw materials were purchased on account, $696,000. b. Raw materials used in production, $655,400. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $430,000; indirect labor, $150,000; selling and administrative salaries, $251,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $411,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $330,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. g. Jobs costing $1,521,800 to manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3,255,000. The jobs cost $1,531,800 to manufacture according to their job cost sheets. 4. What is the total manufacturing overhead applied to production for this year? Manufacturing overhead applied
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 14E: On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following...
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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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Required information
[The following information applies to the questions displayed below.]
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were
as follows:
Raw materials
Work in process
Finished goods
$ 50,000
$ 30,800
$ 43,200
The company applies overhead cost to jobs using direct labor-hours. For this year, the company's predetermined
overhead rate of $12.00 per direct labor-hour was based on a cost formula that estimated $480,000 of total manufacturing
overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded this year:
a. Raw materials were purchased on account, $696,000.
b. Raw materials used in production, $655,400. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $430,000; indirect labor, $150,000; selling and
administrative salaries, $251,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $411,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $330,000.
f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all
jobs during the year.
g. Jobs costing $1,521,800 to manufacture according to their job cost sheets were completed during the year.
h. Jobs were sold on account to customers during the year for a total of $3,255,000. The jobs cost $1,531,800 to
manufacture according to their job cost sheets.
4. What is the total manufacturing overhead applied to production for this year?
Manufacturing overhead applied](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd44294e-a60f-40e1-bef3-d2062541dfe3%2Feb061245-919f-4234-ad93-d39d855bdba4%2F5cc6n8n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were
as follows:
Raw materials
Work in process
Finished goods
$ 50,000
$ 30,800
$ 43,200
The company applies overhead cost to jobs using direct labor-hours. For this year, the company's predetermined
overhead rate of $12.00 per direct labor-hour was based on a cost formula that estimated $480,000 of total manufacturing
overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded this year:
a. Raw materials were purchased on account, $696,000.
b. Raw materials used in production, $655,400. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $430,000; indirect labor, $150,000; selling and
administrative salaries, $251,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods
warehousing), $411,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $330,000.
f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all
jobs during the year.
g. Jobs costing $1,521,800 to manufacture according to their job cost sheets were completed during the year.
h. Jobs were sold on account to customers during the year for a total of $3,255,000. The jobs cost $1,531,800 to
manufacture according to their job cost sheets.
4. What is the total manufacturing overhead applied to production for this year?
Manufacturing overhead applied
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