Reference no: EM131788097
Problem 3-37A Red Fire Inc. produces fire trucks. The company uses a normal job-order costing system to calculate its cost of goods manufactured. The company's policy is to price its job at cost plus 30% markup. On January 1, 2016, there was only one job in process, with the following costs:
| Job 200 |
| Direct materials |
$14,400 |
| Direct labour |
18,000 |
| Applied overhead |
27,000 |
| Total |
$59,400 |
The following balances were taken from the general ledger of the company as of January 1, 2016:
| Direct materials inventory |
$45,100 |
| Finished goods inventory (for Job 100) |
$85,300 |
During the year 2016, the following events occurred:
Direct materials were purchased on account for $376,000
Two more jobs were started: Job 300 and Job 400. Direct materials and direct labour costs incurred by each job in process during the year 2016 are as follows:
| Job 200 |
Job 300 |
Job 400 |
| Direct materials |
$150,800 |
$45,100 |
$35,100 |
| Direct labour |
$133,000 |
$45,100 |
$25,400 |
The company incurred the following actual factory overhead during the year:
| Factory rent |
$134,500 |
| Factory supplies |
$55,500 |
| Indirect labour |
$84,830 |
Calculate the total applied overhead for the year 2016. The factory overhead costs are applied to each job on the basis of direct labour dollars. (Round answer to the nearest whole dollar, e.g. 5,275.)