Reference no: EM132835876
Question - Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished.
September 1, inventories:
Materials $24,000
Work-in-process (All Job X) 53,400
Finished goods 105,600
Materials purchases in September $157,000
Direct materials requisitioned:
Job X $74,000
Job Y 68,000
Direct labor hours:
Job X 7,000 hours
Job Y 5,500 hours
Labor costs incurred:
Direct labor ($6.00 per hour) $75,000
Indirect labor 24,200
Factory supervisory salaries 11,100
Rental costs:
Factory $9,300
Administrative offices 3,200
Total equipment depreciation costs:
Factory $10,400
Administrative offices 2,800
Other:
Indirect materials used $17,800
Required - Answer the following items:
a) What is the factory overhead rate for Becknerf?
b) What is the total direct material cost for Job Y?
c) What is the total direct labor cost for Job Y?
d) How much factory overhead will be applied to Job Y?
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