TB MC Qu. 7-43 (Algo) Pigot Corporation uses job costing and has... Pigot Corporation uses job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as follows: Dept. MDept. ADirect materials$713,000 $113,000 Direct labor 213,000 826,000 Factory overhead 639,000 413,000 The actual direct materials and direct labor costs charged to Job. No. 432 during the year were as follows: Direct materials $48,000 Direct labor: Department M$21,000 Department A 25,000 46,000 Pigot applies manufacturing overhead to production orders on the basis of direct labor cost using departmental rates predetermined at the beginning of the year based on the annual budget. The total cost associated with Job. No. 432 for the year should be: Multiple Choice : A) $121,500. B $140,000. C) $123,500. D) $169,500.

Answered: Pigot Corporation uses job costing and…

TB MC Qu. 7-43 (Algo) Pigot Corporation uses job costing and has...

Manufacturing overhead includes the direct material, direct labor and manufacturing overhead.

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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Direct materials

Direct labor:

Department M

Department A

Pigot Corporation uses job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as follows:

	Dept. M	Dept. A
Direct materials	$	713,000	$	113,000
Direct labor		213,000		826,000
Factory overhead		639,000		413,000

The actual direct materials and direct labor costs charged to Job. No. 432 during the year were as follows:

Pigot applies manufacturing overhead to production orders on the basis of direct labor cost using departmental rates predetermined at the beginning of the year based on the annual budget. The total cost associated with Job. No. 432 for the year should be:

Multiple Choice :

A) $121,500.

B $140,000.

C) $123,500.

D) $169,500.

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