MANAGERIAL ACCOUNTING ACCESS CARD
MANAGERIAL ACCOUNTING ACCESS CARD
17th Edition
ISBN: 9781266165276
Author: Garrison
Publisher: MCG
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Chapter 3, Problem 10Q
To determine

To explain: The way in which direct labor costs flow through a job-order costing system.

Job Order System: Job order system is a costing system used by the companies, which assign costs to manufactured goods or services on the basis of specification provided by the consumer.

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Assume the following information: Direct Materials $40 per unit Direct Labor $20 per unit Total Estimated Manufacturing Overhead $8,400,000 Manufacturing overhead is allocated based on estimated direct-labor hours. Each unit of product requires 1 direct labor hour. If 441,000 units were produced, how much overhead was applied to work in process? (Note: Overhead per unit is based on supervisor's preferred estimate of 420,000 hours.
Sapphire Industries uses a job order costing system. During one month, Sapphire purchased $245,000 of raw materials on credit; issued materials to production of $278,000 of which $18,000 were indirect. Sapphire incurred a factory payroll of $196,000, of which $32,000 was indirect labor. Sapphire uses a predetermined overhead rate of 175% of direct labor cost. The total manufacturing costs added during the period are___.
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MANAGERIAL ACCOUNTING ACCESS CARD

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