Reference no: EM13571225

Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2012.Costs and Production Data

• Raw materials unit cost $2.25 $2.00
• Raw materials units used 10,600 10,000
• Direct labor payroll $122,400 $120,000
• Direct labor hours worked 14,400 15,000
• Manufacturing overhead incurred $184,500
• Manufacturing overhead applied $189,000
• Machine hours expected to be used at normal capacity 42,500
• Budgeted fixed overhead for June $51,000
• Variable overhead rate per hour $3.00
• Fixed overhead rate per hour $1.20

Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.