Pineapple Corporation manufactures custom-made bags. The following data pertains to Job PA8: Direct materials placed into production $5,500 Direct labor hours worked hours 80 Direct labor rate per hour $40 Machine depreciation, supervisor salary $4,900 Machine hours worked 200 hours Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $125,000 for the year, and the direct labor hours were estimated to be 2,000. Assuming that Job PA8 has been sold to the customers for $22.000 (including sales tax 10%), how much is the gross profit from Jab PA8 after the company adjust the overapplied/underannliedioverhear?
Pineapple Corporation manufactures custom-made bags. The following data pertains to Job PA8: Direct materials placed into production $5,500 Direct labor hours worked hours 80 Direct labor rate per hour $40 Machine depreciation, supervisor salary $4,900 Machine hours worked 200 hours Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $125,000 for the year, and the direct labor hours were estimated to be 2,000. Assuming that Job PA8 has been sold to the customers for $22.000 (including sales tax 10%), how much is the gross profit from Jab PA8 after the company adjust the overapplied/underannliedioverhear?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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