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

question 255

Essay

Switech Technology's work in process inventory on June 1 has a balance of $24,500 representing Job No.95.During June,$67,500 of direct materials were requisitioned for Job No.95 and $4,300 of direct labor cost was incurred on Job No.95.Manufacturing overhead is allocated at a rate of $15.00 per direct labor hour.Actual manufacturing overhead costs incurred in June amounted to $20,000.There were 600 actual direct labor hours worked in June.No new jobs were started during June.Job No.95 is completed on June 28.
a)Determine the total cost assigned to Job No.95.
b)Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

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Definitions:

Budgeted Purchases

The planned or forecasted amount of goods a company intends to buy over a specific period, often part of the budgeting process.

Product A

Represents a specific item or service offered by a company to its customers, identified as "A" for differentiation purposes.

Total Budgeted Sales

The total sales revenue a company anticipates to earn over a specific period as estimated during the budgeting process.

Cash Sales

Transactions in which goods or services are exchanged for immediate payment.