Question - Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs.
Direct materials used $384,000 Direct labor 306,000 Factory overhead 658,000
The January 1 balances of inventory accounts are shown below.
Materials - all direct $70,000 Work-in-process 41,000 Finished goods 26,000
The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year.
The cost of goods manufactured during the year is:
$1,332,600.
$1,354,700.
$1,336,700.
$1,373,600.
$1,339,600.