Fill This Form To Receive Instant Help
Homework answers / question archive / ARKANSAS CORPORATION …… is a company that produces machinery to customer order
ARKANSAS CORPORATION
…… is a company that produces machinery to customer order. Its job costing system, using normal costing, has two direct cost categories, direct materials and direct labor, and one indirect cost pool, manufacturing overhead, allocated using a budgeted rate based on direct labor costs. Budgeted and actual information for 2016 are as follows:
|
||||
Budget |
Actual |
|||
Direct Labor |
$420,000 |
$400,000 |
||
Manufacturing overhead |
$252,000 |
$186,840 |
At the end of 2016, the ending work in process consisted of:
Ending Work In Process: |
|||
Direct Materials |
$64,000 |
||
Direct Labor |
50,000 |
||
Overhead |
30,000 |
||
$144,000 |
|||
There were no beginning work-in-process or finished-goods inventories. Ending Finished Goods showed a balance of $156,000, which included overhead costs of $25,200.
Cost of goods sold was $1,600,000, of which $184,800 consisted of applied overhead.
Required:
Already member? Sign In