Harrison Allocates Factory Overhead on the Basis of Direct Labor

question 92

Essay

Harrison allocates factory overhead on the basis of direct labor cost. The overhead rates for the year are 50% for Department A and 100% for Department The total manufacturing costs assigned to job M15 during May were $1,400,000.
Required:
Calculate the missing (?) costs (Department A direct materials and factory overhead and Department B direct labor).

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Definitions:

Withholding Allowances

A number that employees claim on their W-4 form that reduces the amount of federal income tax withheld from their wages, based on their personal circumstances.

Form 4070

Form 4070 is a tax form used by employees to report tips to their employer, which are then subject to social security and Medicare taxes.

FICA Withholding

Taxes deducted from employees’ paychecks for Social Security and Medicare, based on the Federal Insurance Contributions Act.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.