Question

Required information Problem 02-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 (The following information applies to the questions displayed below.) Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $378,000. Overhead costs incurred in April are: indirect materials, $60,000; indirect labor, $24,000; factory rent, $34,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct materials Direct labor Applied $ 29,000 $ 35,000 22,000 14,000 11,000 7,000 overhead Costs during April Direct materials Direct labor 136,000 215,000 $105,000 101, 000 151,000 102,000 Applied overhead Status on April Finished Finished In 30 (sold) (unsold) process < Prev 4. of 4 Next> here tosearch

Answer 1

As per the given data, overheads are applied at 50% of direct labor cost so the applied overheads are calculated as -

	Job 306	Job 307	Job 308
Applied overhead ($101,000*50/100); ($151,000*50/100); ($102,000*50/100)	$50,500	$75,500	$51,000