4. Running Shorts Co. makes two products: A and B. In the folding department, budgeted information is as follows: Budgeted indirect labor costs in the workshop: $150,000 Budgeted depreciation expenses of equipment: $50,000 Budgeted direct labor costs: $100,000 Budgeted units produced: 50,000 The company allocates indirect labor costs based on direct labor costs and allocates depreciation expenses of equipment based on units produced. The actual direct labor costs for product A are $60,000 and 40,000 units of product A are produced. How much is the manufacturing overhead of product A in the folding department? 120,000 90,000 130,000 40,000
4. Running Shorts Co. makes two products: A and B. In the folding department, budgeted information is as follows: Budgeted indirect labor costs in the workshop: $150,000 Budgeted depreciation expenses of equipment: $50,000 Budgeted direct labor costs: $100,000 Budgeted units produced: 50,000 The company allocates indirect labor costs based on direct labor costs and allocates depreciation expenses of equipment based on units produced. The actual direct labor costs for product A are $60,000 and 40,000 units of product A are produced. How much is the manufacturing overhead of product A in the folding department? 120,000 90,000 130,000 40,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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![4. Running Shorts Co. makes two products: A and B. In the folding department, budgeted information is as follows:
Budgeted indirect labor costs in the workshop: $150,000
Budgeted depreciation expenses of equipment: $50,000
Budgeted direct labor costs: $100,000
Budgeted units produced: 50,000
The company allocates indirect labor costs based on direct labor costs and allocates depreciation expenses of
equipment based on units produced. The actual direct labor costs for product A are $60,000 and 40,000 units of
product A are produced. How much is the manufacturing overhead of product A in the folding department?
120,000
90,000
130,000
40,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e9b9cfe-813b-4d1d-a040-31a29d6d8050%2Fcd3201b6-d37e-423e-b4f3-bd0178ee90bf%2Fcqa1ayr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. Running Shorts Co. makes two products: A and B. In the folding department, budgeted information is as follows:
Budgeted indirect labor costs in the workshop: $150,000
Budgeted depreciation expenses of equipment: $50,000
Budgeted direct labor costs: $100,000
Budgeted units produced: 50,000
The company allocates indirect labor costs based on direct labor costs and allocates depreciation expenses of
equipment based on units produced. The actual direct labor costs for product A are $60,000 and 40,000 units of
product A are produced. How much is the manufacturing overhead of product A in the folding department?
120,000
90,000
130,000
40,000
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