Actual amount of manufacturing support costs


Task: The following applies to the following two parts:

A company manufactures pipes and applies manufacturing support costs tp production at a predetermined rate of $15 per direct labor hour. The following data are obtained from the accounting records for June 20x2:

Direct materials                                       $280,000
Direct labor(7,000 @ $11 per hour)             $77,000
Plant facility rent                                       $66,000
Plant facility insurance                               $20,000
Depreciation on machinery and equipment   $30,000
Sales commissions                                     $40,000
Administrative expenses                             $50,000

1) The actual amount of manufacturing support costs incurred in June 20x2 - $80,000, $110,000, $200,000, or $557,000

2) The amount of manufacturing support costs applied to all jobs during June 20x2 total - $77,000, $ 105,000, $ 110,000, or $ 200,000

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Actual amount of manufacturing support costs
Reference No:- TGS01938512

Now Priced at $25 (50% Discount)

Recommended (90%)

Rated (4.3/5)