The Pacific Manufacturing Compnay operates a job order system and applies overhead cost to jobs on the basis of direct labor costs. Its predetermoned overhead rate was based on a cost formula that estimated $126,000 of manufacturing overhead for an estimated allocation base of $84, 000 direct labor dollars. The compnay had provided the following data in the form of Excel.
Beggingin End
Raw Materials $21,000 16,000
Work in Process 11,000 10,000
Finished Goods 68,000 60,000
The following actual costs were incurred during the year
Purchase of Raw materials (all direct) $133,000
Direct:Labor cost 80,000
Manufacturing overhead costs:
Insurance,factory $7,000
Depreciation of equipment $18,000
Indirect Labor $42,000
Property Taxes $9,000
Maintenance $11,000
Rent, Building $36,000
Questions:
#1 Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,200 in materials and $4200 in direct labor cost, and the compnay proced its jobs at 40% above the job’s cost according to the accunting system.
#2 Direct Labor made up $8,000 of the $40,00 ending Work in Process incentory balance. Supply the information missing below:
Direct Materials………………………….$ ?
Direct Labor…………………………………8,000
Manufacturing overhead………………..?
Workm in Process Inventory……. $40,00