Leslie Corporation uses job order costing system with normal costing for tracking cost to individual...
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Accounting
Leslie Corporation uses job order costing system with normal costing for tracking cost to individual jobs. Overhead is applied based on machine hours used, Prior to the start of the year, overhead was estimated at $200,000. Practical Capacity is 8000 direct labor hours and 4000 machine hours. $210,000 of overhead was applied to production during the year.
The general Ledger for the company revealed the following actual amounts for the year ended December 31 2020:
DR CR
Direct Materials 300,000
Direct Labor 400,000
Indirect Materials 20,000
Indirect Labor 40,000
Selling and advertising 80,000
Factory Repairs 50,000
Administrative Salaries 50,000
Depreciation expense-machinery 120,000
Depreciation expense-office 10,000
Sales Revenue 780,000
What was the amount of actual overhead for the year?
What is the predetermined overhead application rate?
The company is in the process of quoting a price on a job, Job Delta, for which they estimate the following
Materials:
Material A 2000 yards @ $10 per yard
Material B 1000 Gallons @ 5 per gallon
Direct Labor 50 hours @ 20 per hour
Machine hours 100 hours
Whats the total cost of Job beta will be?
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