Carter Manufacturing uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $400,000 and direct labor hours of 10,000. During the month of March 2024, actual direct labor hours of 8,500 were incurred. Use this information to determine the amount of factory overhead that was applied in March 2024.

Carter Manufacturing uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $400,000 and direct labor hours of 10,000. During the month of March 2024, actual direct labor hours of 8,500 were incurred. Use this information to determine the amount of factory overhead that was applied in March 2024.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.
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Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: It estimates there will be five orders in the next year, and those jobs will involve: What is the total cost of the jobs?
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