Durham inc this company use job costing system; the following took place last year
a. raw material require 4 use in production; 40,000 80 percent direct and 20 percent indirect
b. factory cost incurred= 14,600
c. deprecication on plant and equpiment=28,00 34 of deperication relate to factory equipment
d. Cost 4 salary and wages direct labor=40,00 indirect 18,000 sale commision = 25,00
e. insurance cost =3,000
f. mis expe= 18.000
g overhead was apply to production on the business of 15 percent of direct labor cost
h. goods that cost =130;00 were transefer to warehose
i goods that cost 120,00 to manfacture were sold 4 200,000
Question 1. Determine the overhead for the year
Question 2 Prepare a income statement 4 the year