Company A uses direct labor cost as its activity base for assigned overhead costs to jobs. Thecompany estimated the following amounts for 2018 for the company and for Job 201:CompanyOMR 120,000OMR 20,000OMR 24,000Job 201OMR 30,000OMR 25,000Direct materialsDirect laborManufacturing overhead costsDirect labor cost incurred21,000During 2018, and actual overhead costs were OR 142,000. Direct labor cost incurred 21,000Instructions:(a) Compute the predetermined overhead rate.(b) Compute the total manufacturing costs for Job 201.

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Description: Company A uses direct labor cost as its activity base for assigned overhead costs to jobs. Thecompany estimated the following amounts for 2018 for the company and for Job 201:CompanyOMR 120,000OMR 20,000OMR 24,000Job 201OMR 30,000OMR 25,000Direct ma

Predetermined overhead rate of company A=Manufacturing overhead costs Direct labor cost of…

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Company A uses direct labor cost as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2018 for the company and for Job 201: Company OMR 120,000 OMR 20,000 Manufacturing overhead costs OMR 24,000 Job 201 OMR 30,000 OMR 25,000 Direct materials Direct labor Direct labor cost incurred 21,000 During 2018, and actual overhead costs were OR 142,000. Direct labor cost incurred 21,000 Instructions: (a) Compute the predetermined overhead rate. (b) Compute the total manufacturing costs for Job 201.

Company A uses direct labor cost as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2018 for the company and for Job 201: Company OMR 120,000 OMR 20,000 Manufacturing overhead costs OMR 24,000 Job 201 OMR 30,000 OMR 25,000 Direct materials Direct labor Direct labor cost incurred 21,000 During 2018, and actual overhead costs were OR 142,000. Direct labor cost incurred 21,000 Instructions: (a) Compute the predetermined overhead rate. (b) Compute the total manufacturing costs for Job 201.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...

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