Please fill out the blanks below Moonrise Bakery applies factory overhead based
ID: 2463837 • Letter: P
Question
Please fill out the blanks below
Moonrise Bakery applies factory overhead based on direct laber costs. The company incurred the following costs during 2015: direct materials costs, $650,000; direct laber costs, $3,000,000; and factory overhead costs applied, $1,800,000. 1. Determine the company's predetermined overhead rate for year 2015. 2. Assuming that the company's $71,000 ending Work in Process Inventory account for year 2015 had $20,000 of direct laber costs, determine the inventory's direct materials costs. 3. Assuming that the company's $490,000 ending Finished Goods Inventory account for year 2015 had $250,000 of direct materials costs, determine the inventory's direct laber costs and its overhead costs.Explanation / Answer
1)
overhead rate = Overhead cost / labor cost
overhead rate = 1800000/3000000 = 0.60