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Robertson Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #8, #12, and #15.
Raw material used $130,000
Direct labor per hour $9.50
Overhead applied based on direct labor cost 125%
Direct material was requisitioned as follows for each job respectively: 25 percent, 30 percent, and 30 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,800; 3,300; and 4,000; respectively. Indirect labor is $45,000. Other actual overhead costs totaled $50,000.
Refer to Robertson Company. What is the prime cost of Job #8?
a. $93,680
b. $82,850
c. $86,475
d. $59,100
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Lewis Company’s standard labor cost of producing one unit of Product DD is 3.40 hours at the rate of $14.00 per hour. During August, 43,100 hours of labor are incurred at a cost of $14.13 per hour to produce 12,500 units of Product DD. Compute the to..
Gail owns a truck costing $14,000 and used for personal activities. The truck has a $9,100 FMV when it is transferred to her business, which is operated as a sole proprietorship. What is the basis of the truck for determining depreciation?
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