Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114: Job # Direct Materials Direct Labor Overhead Total T114 $ 35,500 $ 18,250 $30,750 $84,500 The company's budgeted costs for the year are as follows: Budgeted overhead Variable $ 72,000 60,000 30,000 Indirect materials Indirect labor Employee benefits Fixed Supervision Depreciation 15,000 17,000 $ 194,000 $ 97,000 Total Budgeted direct labor dollars Rate per direct labor dollar 200% The company's actual costs incurred during the year are as follows: Incurred by Jobs Job # Materials Labor Other Total $ 2,800 24,800 8,800 1,800 $ 10,800 19,600 36,000 17,200 $ 83,600 $ 13,600 44,400 44,800 19,000 T114 2$ T119 T133 T136 $ 38,200 $ 121,800 Incurred by Jobs Overhead Materials Labor Other Total Indirect materials and supplies Indirect labor $ 63,200 $ 63,200 53,200 53,200 Employee benefits Depreciation Supervision 35,800 35,800 17,000 13,200 $ 182,400 17,000 13,200 Total $ 63,200 $ 66,400 $ 52,800 Required: 1. What was the actual factory overhead for Carston Incorporated for the year? 2. What was overapplied or underapplied overhead for the year? 3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job?
Work-in-Process Inventory for Carston Incorporated at the beginning of the year was a single job, Job T114: Job # Direct Materials Direct Labor Overhead Total T114 $ 35,500 $ 18,250 $30,750 $84,500 The company's budgeted costs for the year are as follows: Budgeted overhead Variable $ 72,000 60,000 30,000 Indirect materials Indirect labor Employee benefits Fixed Supervision Depreciation 15,000 17,000 $ 194,000 $ 97,000 Total Budgeted direct labor dollars Rate per direct labor dollar 200% The company's actual costs incurred during the year are as follows: Incurred by Jobs Job # Materials Labor Other Total $ 2,800 24,800 8,800 1,800 $ 10,800 19,600 36,000 17,200 $ 83,600 $ 13,600 44,400 44,800 19,000 T114 2$ T119 T133 T136 $ 38,200 $ 121,800 Incurred by Jobs Overhead Materials Labor Other Total Indirect materials and supplies Indirect labor $ 63,200 $ 63,200 53,200 53,200 Employee benefits Depreciation Supervision 35,800 35,800 17,000 13,200 $ 182,400 17,000 13,200 Total $ 63,200 $ 66,400 $ 52,800 Required: 1. What was the actual factory overhead for Carston Incorporated for the year? 2. What was overapplied or underapplied overhead for the year? 3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost of Goods Sold account for this job?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 62P: (Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith...
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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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