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Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $113,750. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 455,000 hours. During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows: Monthly Data Recorded Job 76 Job 77 Job 78 March Direct materials cost $13,169 Direct labor cost $36,160 Direct labor hours 3,815 April Direct materials cost $0 $10,883 $6,370 Direct labor cost $9,947 $2,929 $2,846 Direct labor hours 1,083 2,594 405 Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May. (a)

Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $113,750. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 455,000 hours. During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows: Monthly Data Recorded Job 76 Job 77 Job 78 March Direct materials cost $13,169 Direct labor cost $36,160 Direct labor hours 3,815 April Direct materials cost $0 $10,883 $6,370 Direct labor cost $9,947 $2,929 $2,846 Direct labor hours 1,083 2,594 405 Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May. (a)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help with part b and provide an explanation

Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $113,750. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 455,000 hours. During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows: Monthly Data Recorded Job 76 Job 77 Job 78 March Direct materials cost $13,169 Direct labor cost $36,160 Direct labor hours 3,815 April Direct materials cost $0 $10,883 $6,370 Direct labor cost $9,947 $22,929 $2,846 Direct labor hours 1,083 2,594 405 Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May. (a)
Transcribed Image Text:Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $113,750. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 455,000 hours. During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows: Monthly Data Recorded Job 76 Job 77 Job 78 March Direct materials cost $13,169 Direct labor cost $36,160 Direct labor hours 3,815 April Direct materials cost $0 $10,883 $6,370 Direct labor cost $9,947 $22,929 $2,846 Direct labor hours 1,083 2,594 405 Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May. (a)
(b) Compute the cost of each job (don't forget to allocate overhead). (Round overhead applied and final answers to the nearest whole dollar, e.g. 5,275.) Job 76 Job 77 Job 78 Total costs $ $ $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer %24
Transcribed Image Text:(b) Compute the cost of each job (don't forget to allocate overhead). (Round overhead applied and final answers to the nearest whole dollar, e.g. 5,275.) Job 76 Job 77 Job 78 Total costs $ $ $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer %24
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