Understanding Business
Understanding Business
13th Edition
ISBN: 9781264249527
Author: Nickels, William G.
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter B.1, Problem B.1AQ

The Amazon Echo is more than just an ordinary than just an ordinary sound system: the hands-free device is powered by Alexa, Amazon’s artificial intelligence software. All a user has to do is say “Alexa” and he or she has got the user can ask Alexa to play music, check the weather, or even order groceries. Do you think voice-activated appliances like this will become more popular in the future?

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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   Job A 70,000 Job B 36,000 Direct labor hours   Job A 4,700 Job B 4,000 Labor costs incurred   Direct labor ($7.00/hour) 60,900 Indirect labor 14,000 Supervisory salaries 6,500 Rental costs   Factory 7,500 Administrative offices 2,300 Total equipment depreciation costs   Factory 8,250 Administrative offices 2,350 Indirect materials used 12,500…
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