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:

Economic Infrastructure

Refers to the basic physical and organizational structures needed for the operation of a society or enterprise, such as transportation, communication systems, water, and power lines.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and investment firms.

Nonmonetary Forms

Nonmonetary forms involve values or transactions that do not have a direct monetary value or involve the exchange of money, such as volunteer work or bartering systems.

Commercial Transactions

The exchange of goods, services, or financial assets between parties in a business environment.