Business, 02.11.2019 03:31 only1kariyah
Gitano products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). its predetermined overhead rate was based on a cost formula that estimated $121,800 of manufacturing overhead for an estimated allocation base of $87,000 direct material dollars to be used in production. the company has provided the following data for the just completed year:
purchase of raw materials $ 134,000
direct labor cost $ 83,000
manufacturing overhead costs:
indirect labor $ 119,900
property taxes $ 8,600
depreciation of equipment $ 17,000
maintenance $ 13,000
insurance $ 7,600
rent, building $ 39,000
Answers: 2
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