Question
In: Accounting
During the month of July, direct labour cost totalled $24,000 and direct labour cost was 30%...
During the month of July, direct labour cost totalled $24,000 and direct labour cost was 30% of prime cost. If total manufacturing costs during June were $105,000, the manufacturing overhead was:
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Expert Solution
Prime cost=Direct materials+Direct labor
24000=30%*prime cost
prime cost=(24000/0.3)
=$80000
Total manufacturing cost=Direct materials+Direct labor+manufacturing overhead
105,000=Prime cost+manufacturing overhead
manufacturing overhead=(105,000-80,000)
=$25000
ekkarill92 answered 2 years agoRelated Solutions
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The following information relates to Burgundy for July 2020:
Actual direct labour
costs
$50,000
Actual direct labour rate per
hour
$10
Factory overhead rate per direct labour
hour
$15
Factory overhead
incurred
$80,000
As part of the cost planning and cost control of operations and
activities, management is concerned regarding the applied overhead
rate used.
Required
Identify whether there is an underapplied or
overapplied overhead. Assuming underapplied or overapplied overhead
is transferred to cost of goods sold at the...
The following information relates to Burgundy for July 2020: Actual direct labour costs
The following information relates to Burgundy for July 2020:
Actual direct labour
costs $50,000
Actual direct labour rate per
hour $10
Factory overhead rate per direct labour
hour $15
Factory overhead
incurred $80,000
As part of the cost planning and cost control of operations and
activities, management is concerned regarding the applied overhead
rate used.
Required
Identify whether there is an underapplied or
overapplied overhead. Assuming underapplied or overapplied overhead
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$ 62,000
Work-in-process
145,000
171,000
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Direct labor
$200,000
Direct materials purchased
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Group of answer choices
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$56,000 underapplied
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Unpaid and unrecorded wages at june 30 totalled $4,100
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