Reference no: EM132229102
Question - Fairfield Company applies manufacturing overhead to products at a predetermined rate of $66 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here:
Item Description Total Cost
Direct materials Used on Jobs 101 and 102 70,000
Indirect materials Used on multiple jobs 13,400
Hourly labor wages 880 hours @ $33 per hour
150 hours for Job 101 = $ 4,950
270 hours for Job 102 = 8,910
460 hours for Job 103 = 15,180 29,040
Factory supervision 3,350
Production engineer 6,000
Factory janitorial work 1,600
Selling, general, and administrative salaries 8,800
Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.) 6,200
Other selling, general, and administrative costs (office rent, insurance, depreciation, etc.) 4,400
Record the transfer of manufacturing overhead account balance to cost of goods sold.