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    Support Costs

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    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

    © BrainMass Inc. brainmass.com June 3, 2020, 5:39 pm ad1c9bdddf
    https://brainmass.com/business/accounting/support-costs-34264

    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

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