Question

The following cost data relate to the manufacturing activities of Black Diamond Ski Company during 2013:

Answer 1

Answer:

See Below

Explanation:

1.

= Actual manufacturing overhead cost - Budgeted total overhead

Actual manufacturing overhead cost = $48,000

Budgeted total overhead = $52,500

= $48,000 - $52,500

= $4,500

The above is under applied overhead since Budgeted overhead is more than the actual overhead expended.

2. Cost of goods manufactured

Inventories ; raw materials at the beginning

$8,000

Add purchases of raw materials

$32,000

Less direct materials ending

$7,000

Direct materials used

$33,000

Direct labor cost

$40,000

Manufacturing overhead cost

$77,000

Indirect labor

$10,000

Property tax

$3,000

Utilities factory

$3,000