(Solution) - Johnson Inc is a job order manufacturing company that uses a -(2025 Original AI-Free Solution)
Paper Details
Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor-hours to apply overhead to individual jobs. For 2010, estimated
direct labor-hours are 95,000, and estimated factory overhead is $617,500. The following information is for September 2010. Job A was completed during September, and Job B was started but not finished.
September 1, 2010, inventories
Materials inventory ............. $ 7,500
Work-in-process inventory (All Job A) ...... 31,200
Finished goods inventory ............ 67,000
Material purchases .............. 104,000
Job A .................... 65,000
Job B .................... 33,500
Direct labor-hours
Job A .................... 4,200
Job B .................... 3,500
Labor costs incurred
Direct labor ($8.50/hour) ............. 65,450
Indirect labor ................ 13,500
Supervisory salaries .............. 6,000
Rental costs
Factory ................... 7,000
Administrative offices ........... 1,800
Total equipment depreciation costs
Factory ................. 7,500
Administrative offices ........... 1,600
Indirect materials used ........... 12,000
Required
1. What is the total cost of Job A?
2. What is the total factory overhead applied during September?
3. What is the overapplied or underapplied overhead for September?