Taylor Corp After Adjusting for the Amount of Over or Underapplied Overhead

question 84

Essay

Taylor Corp. uses a job order costing system and worked only on Job 101 during the current period. Job 101 was sold for $460,000. The following information pertains to costs incurred for Job 101.
$$\begin{array} { |l | l |} \hline\text { Direct Materials } & \$ 90,000 \\\hline \text { Indirect Materials } & \$ 30,000 \\\hline \text { Direct Labor } & \$ 130,000 \\\hline \text { Indirect Labor } & \$ 75,000 \\\hline \text { Depreciation of Machinery } & \$ 10,000 \\\hline \text { Factory Supplies } & \$ 8,000 \\\hline \text { Overhead Application Rate } & 90 \% \text { of direct labor } \\\hline\end{array}$$ After adjusting for the amount of over or underapplied overhead, determine the amount of gross profit earned on Job 101.

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Definitions:

1630-1640

A decade during which significant migration to the American colonies occurred, particularly by Puritans to Massachusetts, marking a crucial development phase of early American society.

Chesapeake Region

An area surrounding the Chesapeake Bay, encompassing parts of Maryland and Virginia, significant in early American history for its tobacco cultivation and as a center of colonial society.

Labor Organization

Groups such as unions or associations that represent the interests of employees, working to improve working conditions, wages, and benefits through negotiation and collective bargaining.

1600s

The 17th century, a period marked by significant global exploration, colonization, and the beginning of the modern world system.