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

question 83

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 labour cost was incurred on Job No. 95. Manufacturing overhead is allocated at a rate of $15.00 per direct labour hour. Actual manufacturing overhead costs incurred in June amounted to $20,000. There were 600 actual direct labour 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?

Definitions:

Capital Structure

Capital Structure refers to the mix of debt and equity financing a company uses to fund its operations and growth, influencing its risk profile and cost of capital.

Free Cash Flows

This refers to the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. It is an indicator of a company's financial flexibility.

Conglomerate Merger

A conglomerate merger occurs between companies operating in different industries, aimed at diversification and potential synergies.

Defensive Mergers

Defensive mergers are strategic actions taken by companies to fend off hostile takeovers, merge with competitors or acquire businesses in non-related industries to diversify their portfolio and reduce competition.