Question 2 30 Points Deluxe Design Company makes custom furniture. On December 1, there were...
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Accounting
Question 2
30 Points
Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process: Job 683 with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows:
Job 683
Job 684
Job 685
Job 686
Job 687
Direct materials
$11,000
$8,000
$31,400
$16,700
$6,000
Direct labor
21,000
6,000
12,300
8,450
2,500
Overhead is applied to production at a rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in-process.
Required:
A. The actual overhead for December was $41,100. Calculate the variance.
$
B. Calculate the sales price for Job 684.
$
C. Calculate the adjusted cost of goods sold for the month of December.
$
D. If selling and administrative expenses for the month totaled $5,600, what is the company's operating income for December?
$
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