Alpha Technology's Work in Process Inventory on June 1 Has

question 197

Essay

Alpha Technology's work in process inventory on June 1 has a balance of $27,200 representing Job No. 72. During June, $68,900 of direct materials were requisitioned for Job No. 72 and $5,500 of direct labor cost was incurred on Job No. 72. Manufacturing overhead is allocated at a rate of $16.00 per direct labor hour. Actual manufacturing overhead costs incurred in June amounted to $15,000. There were 700 actual direct labor hours worked in June. No new jobs were started during June. Job No. 72 is completed on June 28.
a. Determine the total cost assigned to Job No. 72.
b. Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

---

Definitions:

Degrees Of Freedom

The total count of values that can change in the ultimate calculation of a statistical figure.

Standard Normal Distribution

A bell-shaped distribution that has a mean of zero and a standard deviation of one, used in probability and statistics.

T-Distribution

A type of probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population standard deviation is unknown.

Confidence Intervals

Statistical intervals that estimate where a population parameter, based on sample data, is expected to lie, including a range of possible values.