Question

Saved GLO201 - Based on Problem 02-1A Marcelino Company LO C2, P1, P2, P3, P4 Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500.000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Job 386 Job 387 Job 388 Balances on March 31 $35,000 18,000 9,800 Direct $ 29,000 materials Direct labor 20,000 Applied 10,000 overhead Costs during April Direct 135,000 materials Direct labor 85,00 Applied overhead Status on April Finished 30 (sold) 220,000 150,00 $100,000 105,000 Finished (unsold) In process Complete this question by entering your answers in the tabs below. Cost of Good GoPro General General Job Costs Trial Balance Requirement Prov 1 1 m Next >

Answer 1

	Predetermined overhead application rate = 50% of Labor cost
		Job 306	Job 307	Job 308
	Direct Labor applied	$85,000	$150,000	$105,000
	Applied overhead(50% of labor)	$42,500	$75,000	$52,500
		(85,000*50%)	(150,000*50%)	(105,000*50%)