Calculate the plantwide overhead rate

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Reference no: EM131880835

Question: 1. ABC is a job-order costing manufacturer that uses a plantwide overhead rate based on direct labor hours. Estimations for the year include $800,000 in overhead and 50,000 direct labor hours. ABC produced five products in March. Data are as follows:

	Product 89	Product 90	Product 91	Product 92	Product 93
Balance, 3/1	$30,000	$40,000	$ 10,000	$0	$0
Direct materials	15,000	17,000	25,000	18,000	10,000
Direct labor cost	$10,000	$8,000	$16,000	$9,000	$5,000
Direct labor hours - for month	1,000	800	1,600	900	500

By March 31, Jobs 89 and 91 were completed and sold. The rest of the jobs remained in process.

A. Calculate the plantwide overhead rate.

B. Calculate the Work in Process on March 31.

C. Calculate the cost of goods sold for March.

D. Assume ABC marks up cost by 40%. What is the selling price of Jobs 89 and 91?

Reference no: EM131880835

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