The following information is for Ogden Company for the month of November:
1. Factory overhead costs are applied to jobs at the predetermined rate of $80 per labor-hour. Job X-14 incurred 2,300 labor-hours; Job SM-4 used 1,850 labor-hours.
2. Job X-14 was shipped to customers during November. Job X-14 had a gross margin of 24 percent based on manufacturing cost.
3. Job SM-4 was still in process at the end of November.
4. Factory utilities, factory depreciation, and factory insurance incurred is summarized by these factory vouchers, invoices, and cost memos:

\begin{array} { l r } \text { Utilities } & \$ 44,500 \\\text { Depreciation } & 53,500 \\\text { Insurance } & 38,600\end{array}

5. The Company purchased the following direct materials and indirect materials:

\begin{array} { l r } \text { Material A } & \$ 6,000 \\\text { Material B } & 7,000 \\\text { Indirect materials } & \underline{4,250 }\\\text { Total } &\underline{ \$ 17,250}\end{array}

6. Direct materials and indirect materials used are as follows:

\begin{array}{lrrrrrr}&\text {Job X-14}&\text {Job SM-4}&\text {Total}\\\text { Material A } & \$ 5,450 & \$ 33,000 & \$ 38,450 \\\text { Material B } & 1,650 & 25,500 & 27,150 \\\text { Subtotal } & \$ 7,100 & \$ 58,500 & \$ 65,600\\\text { Indirect materials}&&&66,500\\\text { Total}&&&\$132,100\end{array}

7. Factory labor incurred for the two jobs and indirect labor is as follows:

\begin{array} { l r } \text { Job X-14 } & \$ 32,200 \\\text { Job SM-4 } & 25,900 \\\text { Indirect labor } & \underline{122,000} \\\text{Total} & \underline{\$ 180,000}\\\end{array}

Required:
Calculate the total manufacturing cost for Job X-14 and Job SM-4 for November.

Which of the Following Statements Is (Are) False Regarding Cost

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge