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Author Question: Stone Cliff Company manufactures custom-order furniture. During 2020, actual manufacturing overhead ... (Read 43 times)

Aimless0988

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Stone Cliff Company manufactures custom-order furniture. During 2020, actual manufacturing overhead totaled $720,000. Based on the 2020 results, and projected production for 2021, management prepared the 2021 budget and estimated that manufacturing overhead would total $800,000. The estimated number of direct labor hours for 2021 is 50,000, and the estimated amount of direct labor cost is $1,000,000. The company plans to use direct labor hours as the basis to allocate overhead to jobs. During May and June 2021, employees worked on the following four jobs:

Monthly dataJob X43Job X87Job Z22Job A33
May
  Direct materials$86,000$72,000$44,000$38,000
  Direct labor cost$101,000$91,000$78,000$52,000
  Direct labor hours5,0504,5503,9002,600
June
  Direct materials$24,000$41,000$35,000$24,000
  Direct labor cost$28,000$52,000$62,000$32,800
  Direct labor hours1,4002,6003,1001,640
Job X87 was started in May and delivered to the customer in late June. What is the cost of Job X87?
◦ $266,296
◦ $370,400
◦ $263,150
◦ $256,000


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Marked as best answer by Aimless0988 on Feb 5, 2023

psuniv

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Aimless0988

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


anyusername12131

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Reply 3 on: Yesterday
:D TYSM

 

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