Answer:
Instructions are listed below
Explanation:
Giving the following information:
Manufacturing overhead costs incurred:
Indirect materials $16,700
Indirect labor $147,000
Property taxes, factory $9,700
Utilities, factory $87,000
Depreciation, factory $273,900
Insurance, factory $11,700
Total actual manufacturing overhead costs incurred $ 546,000
Other costs incurred:
Purchases of raw materials (direct and indirect) $417,000
Direct labor cost $ 77,000
Inventories:
Raw materials, beginning $ 21,700
Raw materials, ending $ 31,700
Work in process, beginning $ 41,700
Work in process, ending $ 71,700
The company uses a predetermined overhead rate of $26 per machine-hour to apply overhead cost to jobs.
A total of 21,400 machine-hours were used during the year.
A) First, we need to calculate the allocated overhead:
Allocated overehad= overhead rate*actual hours= 26*21400= $556,400
Over/under allocation= real overhead - allocated overhead= 546,000 - 556,400= 10,400 overallocated.
B)
cost of goods manufactured= beginning work in process + direct materials + direct labor + allocated overhead - ending work in process
cost of goods manufacured= 41700 + (21700 + 417000 - 31700) + 77000 + 556400 - 71700= $1,010,400
