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Support Costs

The following applies to the following two parts:

A company manufactures pipes and applies manufacturing support costs tp production at a predetermined rate of $15 per direct labor hour. The following data are obtained from the accounting records for June 20x2:

Direct materials $280,000
Direct labor(7,000 @ $11 per hour) $77,000
Plant facility rent $66,000
Plant facility insurance $20,000
Depreciation on machinery and equipment $30,000
Sales commissions $40,000
Administrative expenses $50,000

1) The actual amount of manufacturing support costs incurred in June 20x2 - $80,000, $110,000, $200,000, or $557,000

2) The amount of manufacturing support costs applied to all jobs during June 20x2 total - $77,000, $ 105,000, $ 110,000, or $ 200,000

Solution Preview

1)
Direct materials $280,000
Direct labor(7,000 @ $11 per hour) $77,000
Plant facility rent $60,000 (I am sure that there's ...

$2.19