Question

command option option command Company started its operation on March 1 with me b Job Job was completed and sold by the end of March The company uses a plant-wide predetermined overhead information is available for the company as a whole and for Jobs P March): r ied two jobs during March and bul was not sold by the end of Mac The following ad a u ree to the month Estimated total fixed manufacturing overhead (MOH) Estimated variable manufacturing overhead cost per DLH Total actual manufacturing overhead costs incurred $ 1.60 $ 170.000 წინ! Direct materials Direct labor cost Estimated DLHs Actual DLHs worked - S 5 Job P 17,500 43,200 2,700 2.400 11.700 630 650 The ending inventory balance of Work-in-process: The ending inventory balance Finished Goods Inventory: 50.00 $24,380 17 What was the estimated total FIXED MOH? A. S 11,880 B. $ 17,316 C. $ 11,988 D. $ 10,980 E. None of the above

please solve this question with details, thanks

Answer 1

Answer: Option-(C): $11,988 Workings: It is given that Job Q was completed but not sold. So, value of ending finished goods inventory represents Job Q's total cost. That is Total cost of ending finished goods inventory (Job Q) $24,380 -$1,040 [650 DLHS x $1.60] Less: Variable overhead cost allocated $23,340 Manufacturing costs other than variable overhead -$9,300 Less: Direct materials -$11,700 Less: Direct labor cost $2,340 Fixed manufacturing overhead allocated to Job Q Job Q's actual direct labor hours 650 $3.60 [$2340/650 DLHS] Estimated fixed overhead cost per direct labor hour Total estimated direct labor hours for Job P & Q 3,330 [2,700 630] Estimated total fixed Manufacturing overhead (MOH) $11,988 [3330 DLHS x $3.60]