Bulla Ltd, which uses a job costing system, had one job in process at the start of the year: Job K1 ($78 000). The following information is available: (i) The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $920 000 and 20 000 hours, respectively. (ii) The company worked on three jobs during the first quarter (i.e. from 1st January to 31st March). Direct materials used, direct labour incurred and machine hours consumed were as shown in the following table: (iii) Manufacturing overhead incurred during the first quarter was $275 000. (iv) Bulla Ltd completed Job K1 and Job K3 during the first quarter. Job K3 was sold on credit, producing a profit of $30 000 for the company. Required: a) Calculate the company’s predetermined overhead rate. b) Calculate manufacturing overhead applied to production for the first quarter. c) Determine the cost of jobs completed in the first quarter

Bulla Ltd, which uses a job costing system, had one job in process at the start of the year: Job K1 ($78 000). The following information is available: (i) The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $920 000 and 20 000 hours, respectively. (ii) The company worked on three jobs during the first quarter (i.e. from 1st January to 31st March). Direct materials used, direct labour incurred and machine hours consumed were as shown in the following table: (iii) Manufacturing overhead incurred during the first quarter was $275 000. (iv) Bulla Ltd completed Job K1 and Job K3 during the first quarter. Job K3 was sold on credit, producing a profit of $30 000 for the company. Required: a) Calculate the company’s predetermined overhead rate. b) Calculate manufacturing overhead applied to production for the first quarter. c) Determine the cost of jobs completed in the first quarter

Name: Bulla Ltd, which uses a job costing system, had one job in process at
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Description: Bulla Ltd, which uses a job costing system, had one job in process at the start of the year: JobK1 ($78 000). The following information is available:(i) The company applies manufacturing overhead on the basis of machine hours. Budgetedoverhead and ma

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 7MC: What is the cost of direct labor f the conversion costs are $330.000 and manufacturing overhead is...

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