The following cost data relate to the manufacturing activities of the Kalinka Company last year: Manufacturing overhead costs: Property taxes.... Utilities, factory.. Indirect labor.. Depreciation, factory. Insurance, factory.. Total. Other costs incurred: Purchases of direct materials. Direct labor cost.. Inventories: Direct materials, January 1. Direct materials, December 31. Work in process, January 1. Work in process, December 31. $ 1,500 2,500 5,000 12,000 3.000 $24.000 $16,000 $20,000 $4,000 $3,500 $3,000 $3,750 The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The rate last year was $5.00 per machine-hour; a total of 5,000 machine-hours were recorded for the year.
The following cost data relate to the manufacturing activities of the Kalinka Company last year: Manufacturing overhead costs: Property taxes.... Utilities, factory.. Indirect labor.. Depreciation, factory. Insurance, factory.. Total. Other costs incurred: Purchases of direct materials. Direct labor cost.. Inventories: Direct materials, January 1. Direct materials, December 31. Work in process, January 1. Work in process, December 31. $ 1,500 2,500 5,000 12,000 3.000 $24.000 $16,000 $20,000 $4,000 $3,500 $3,000 $3,750 The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The rate last year was $5.00 per machine-hour; a total of 5,000 machine-hours were recorded for the year.
Chapter1: Financial Statements And Business Decisions
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The following cost data relate to the manufacturing activities of the Kalinka Company
last year:
Manufacturing overhead costs:
Property taxes....
Utilities, factory...
Indirect labor.
Depreciation, factory..
Insurance, factory..
Total........
Other costs incurred:
Purchases of direct materials.
Direct labor cost..
Inventories:
Direct materials, January 1
Direct materials, December 31..
Work in process, January 1.
Work in process, December 31.
$ 1,500
2,500
5,000
12,000
3.000
$24.000
$16,000
$20,000
$4,000
$3,500
$3,000
$3,750
The company uses a predetermined overhead rate to apply manufacturing overhead
cost to production. The rate last year was $5.00 per machine-hour; a total of 5,000
machine-hours were recorded for the year.
Required:
a. Compute the amount of under- or overapplied overhead cost for the year.
b. Prepare a schedule of Cost of Goods Manufactured for the year.
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