Kine Co. is planning to sell 1,500 boxes of grout, with production estimated at 1,392 boxes during May. Each box of grout requires 60 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.60 per pound and employees of the company are paid $18.00 per hour. Manufacturing overhead is applied at a rate of 90% of direct labor costs. Kine has 4,200 pounds of clay mix in beginning inventory and wants to have 5,200 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?

Kine Co. is planning to sell 1,500 boxes of grout, with production estimated at 1,392 boxes during May. Each box of grout requires 60 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.60 per pound and employees of the company are paid $18.00 per hour. Manufacturing overhead is applied at a rate of 90% of direct labor costs. Kine has 4,200 pounds of clay mix in beginning inventory and wants to have 5,200 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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