Reference no: EM131803394
1. Determine the Allocated Factory Overhead cost for the month of August for Ford using the following information. The allocation base is direct labor costs.
Estimated Direct Labor Used yearly: $125,000
Estimated Indirect Costs (factory overhead) yearly: $62,500
Direct Labor Used during August: $55,000
2. Wilson Sports manufactures leather footballs in their factory. Identify each of the following as a Direct Material, Direct Labor or Factory Overhead example for Wilson's football production:
Thread for footballs Direct Material
Employee putting completed footballs in a box ________
Factory foreman's salary ________
Leather for footballs ________
Factory utilities ________
3. Compute Cost of Goods Manufactured using the following information:
Direct Materials Used: $30,000
Factory (Manufacturing) Overhead: $4,000
Beginning Work in Process Inventory: $10,000
Ending Work in Process Inventory: $3,000
Direct Labor: $20,000
Finished Goods Inventory: $13,000