The Following Information Is for Ogden Company for the Month $$\begin{array} { l r } \text { Utilities } & \$ 44,500 \\\text { Depreciation } & 53,500 \\\text { Insurance } & 38,600\end{array}$$

question 84

Essay

The following information is for Ogden Company for the month of November:
1. Factory overhead costs are applied to jobs at the predetermined rate of $80 per labor-hour. Job X-14 incurred 2,300 labor-hours; Job SM-4 used 1,850 labor-hours.
2. Job X-14 was shipped to customers during November. Job X-14 had a gross margin of 24 percent based on manufacturing cost.
3. Job SM-4 was still in process at the end of November.
4. Factory utilities, factory depreciation, and factory insurance incurred is summarized by these factory vouchers, invoices, and cost memos:
$$\begin{array} { l r } \text { Utilities } & \$ 44,500 \\\text { Depreciation } & 53,500 \\\text { Insurance } & 38,600\end{array}$$
5. The Company purchased the following direct materials and indirect materials:
$$\begin{array} { l r } \text { Material A } & \$ 6,000 \\\text { Material B } & 7,000 \\\text { Indirect materials } & \underline{4,250 }\\\text { Total } &\underline{ \$ 17,250}\end{array}$$
6. Direct materials and indirect materials used are as follows:
$\begin{array}{lrrrrrr}&\text {Job X-14}&\text {Job SM-4}&\text {Total}\\\text { Material A } & \$ 5,450 & \$ 33,000 & \$ 38,450 \\\text { Material B } & 1,650 & 25,500 & 27,150 \\\text { Subtotal } & \$ 7,100 & \$ 58,500 & \$ 65,600\\\text { Indirect materials}&&&66,500\\\text { Total}&&&\$132,100\end{array}$

7. Factory labor incurred for the two jobs and indirect labor is as follows:
$$\begin{array} { l r } \text { Job X-14 } & \$ 32,200 \\\text { Job SM-4 } & 25,900 \\\text { Indirect labor } & \underline{122,000} \\\text{Total} & \underline{\$ 180,000}\\\end{array}$$
Required:
Calculate the total manufacturing cost for Job X-14 and Job SM-4 for November.

---

Definitions:

Defined Benefits Plan

A type of pension plan where the benefits that the employee will receive upon retirement are defined in advance.

Investment Risks

Investment risks involve the potential for losing some or all of the original investment, affected by market volatility, inflation, and other factors.

Defined Benefit Plans

A type of pension plan where the employer guarantees a specified pension payment upon retirement, based on factors like salary history and years of service.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.