Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most recent fiscal year Indicates the following: • Total manufacturing cost during the year was $2,578,225 based on actual direct materials, actual direct labor, and applied manufacturing overhead. Of this amount, 40 percent was comprised of direct costs. ■ Manufacturing overhead was applied to work in process at 250 percent of direct materials dollars. Required: Compute actual direct materials used, actual direct labor, and applied manufacturing overhead. Direct materials used Direct labor Manufacturing overhead applied

Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most recent fiscal year Indicates the following: • Total manufacturing cost during the year was $2,578,225 based on actual direct materials, actual direct labor, and applied manufacturing overhead. Of this amount, 40 percent was comprised of direct costs. ■ Manufacturing overhead was applied to work in process at 250 percent of direct materials dollars. Required: Compute actual direct materials used, actual direct labor, and applied manufacturing overhead. Direct materials used Direct labor Manufacturing overhead applied

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Description: Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the mostrecent fiscal year Indicates the following:■ Total manufacturing cost during the year was $2,578,225 based on actual

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most
recent fiscal year Indicates the following:
■ Total manufacturing cost during the year was $2,578,225 based on actual direct materials, actual direct labor, and applied
manufacturing overhead. Of this amount, 40 percent was comprised of direct costs.
■ Manufacturing overhead was applied to work in process at 250 percent of direct materials dollars.
Required:
Compute actual direct materials used, actual direct labor, and applied manufacturing overhead.
Direct materials used
Direct labor
Manufacturing overhead applied

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