FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please help me compute the
Yancey Productions is a film studio that uses a job-order costing system. The company’s direct materials consist of items such as costumes and props. Its direct labor includes each film’s actors, directors, and extras. The company’s overhead costs include items such as utilities,
At the beginning of the year, Yancey made the following estimates:
Direct labor-dollars to support all productions $ 8,260,000
Fixed overhead cost $ 4,956,000
Variable overhead cost per direct labor-dollar $ 0.17
Required:
1. Compute the predetermined overhead rate. (I found the answer: .77 per DL$)
2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Direct materials $ 1,386,000
Direct labor cost $ 2,478,000
Compute the total
Direct Materials: $1,386,000
Direct Labor: $2,478,000
Overhead Applied: HELP!
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