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T&R Company

The T&R Company's production costs for August are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production equipment, $800; heat, lights and power, $1,000; and insurance on plant and equipment, $200. T&R Company's factory overhead incurred for August is

a. 2,000
b. 6,500
c. 8,500
d. 21,500
e. 36,500

If one unit of Product X used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?

a. 8.00
b. 5.50
c. 2.50
d. 1.60
e. 0.90

The FIFO method does not use the costs of beginning inventory in computing cost per equivalent unit for the current period

True
False

Solution Preview

The T&R Company's production costs for August are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production equipment, $800; heat, lights and power, $1,000; and insurance on plant and ...

Solution Summary

This solution is comprised of a detailed explanation to answer how much T&R Company's factory overhead incurred for August is.

$2.19