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# The following solution helps with various accounting problems. The concepts covered include cost of inventory and hours of labor.

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1. Deckhand Accessories, Inc., manufactures women's boating shoes. Manufacturing overhead is assigned to production on a machine-hour basis. For 2010, it was estimated that manufacturing overhead would total \$974,400 and that 67,200 machine hours would be used.

(a) Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2010. (Round your answer to 2 decimal places)

b). During May, 11,720 pairs of shoes were made. Raw materials costing \$56,936 were used, and direct labor costs totaled \$57,600. A total of 5,680 machine hours were worked during the month of May,. Calculate the cost per pair of shoes made during May. (Round your intermediate calculations and final answer to 2 decimal places)

Cost per pair of shoes \$:

(c) At the end of May, 3,156 pairs of shoes were in ending inventory. Calculate the cost of the ending inventory and the cost of the shoes sold during May. (Round your intermediate calculations and final answer to 2 decimal places)

Cost of shoes in inventory \$:
Cost of shoes sold \$:

2. LampArt Co. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During November, the first month of the company's fiscal year, \$173,250 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of \$15 per direct labor hour.

Required:
Calculate the number of hours of direct labor used during November.

Direct labor hours: