Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
8th Edition
ISBN: 9781337274852
Author: Ragsdale, Cliff
Publisher: South-Western College Pub
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Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 89,000 and estimated factory overhead is $445,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished.
September 1, inventories
Materials inventory
$ 8,000
Work-in-process inventory (All Job A)
32,200
Finished goods inventory
69,500
Material purchases
111,500
Direct materials requisitioned
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Direct labor hours
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Job B
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Labor costs incurred
Direct labor ($7.00/hour)
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Indirect labor
14,000
Supervisory salaries
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Rental costs
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Administrative offices
2,300
Total equipment depreciation costs
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Administrative offices
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Indirect materials used
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