Which of the following is an example of the operations concerns of a business plan?
1 answer:
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Answer and Explanation:
1. The computation of overhead rate based on direct labor cost is shown below:-
Overhead rate = Overhead applied × 100 ÷ Direct labor cost
= 888 × 100 ÷ 1,200
= 74%
2. The Preparation of job-order cost sheet for the four jobs is shown below:
Particulars Job 86 Job 87 Job 88 Job 89
Beginning balance $6,888 $6,820
Direct materials $3,000 $7,000 $2,100 $1,500
Direct labor $800 $6,000 $900 $500
Applied overhead
is 74% of direct labor $592 $4,440 $666 $370
Total $11,280 $24,260 $3,666 $2,370
3. The computation of ending balances of Work in Process and Finished Goods is shown below:-
Work in process of Job 88 = $3,666
Finished goods = Total of Job 86 + Total of Job 89
= $11,280 + $2,370
= $13,650
4. The computation of the Cost of Goods Sold for March is shown below:-
Cost of goods sold is
= Job 87
= $24,260
Answer:
Overhead cost allocated to steel bars = $4.6 6,600 = $30,360
Explanation:
Provided information,
Two products manufactured
Steel Bars and Titanium bars
Number of hours = 1 hour each
Total units produced
Steel = 6,600
Titanium = 3,400
Total hours @ 1 hour for each = 6,600 + 3,400 = 10,000
Total Setup cost = $46,000
Cost per hour based on direct labor hours = $46,000/10,000 = $4.6
Overhead cost allocated to steel bars = $4.6 6,600 = $30,360