7. In a process cost system, the application of factory overhead usually would be recorded as an increase in
8. Jonathan Mfg. adopted a job-costing system. For the current year, budgeted cost driver activity levels for direct labor hours and direct labor costs were 20,000 and $ 100,000, respectively. In addition, budgeted variable and fixed factory overheads were $ 50,000 and $ 25,000, respectively. The actual costs and hours for the year were as follows: Direct labor hours 21,000, Direct labor costs $ 110,000, Machine hours 35,000. For a particular job, 1,500 direct labor hours were used. Using direct labor hours as the cost driver, what amount of overhead should be applied to this job?
9. Indirect labor is a
10. Hoyt Co. manufactured the following units: Saleable 5,000, Unsalable( normal spoilage) 200, Unsalable( abnormal spoilage) 300, the manufacturing cost totaled $ 99,000. What amount should Hoyt debit to finished goods?
11. In the past, four direct labor hours were required to produce each unit of product Y. Material costs were $ 200 per unit, the direct labor rate was $ 20 per hour, and factory overhead was three times the direct labor cost. In budgeting for next year, management is planning to outsource some manufacturing activities and to further automate others. Management estimates that these plans will reduce labor hours by 25 %, increase the factory overhead rate to 3.6 times the direct labor costs, and increase material costs by $ 30 per unit. Management plans to manufacture 10,000 units. What amount should management budget for the cost of goods manufactured?
12. During the month of March 2005, Nale Co. used $ 300,000 of direct materials. On March 31, 2005, Nale ' s direct materials inventory was $ 50,000 more than it was on March 1, 2005. Direct material purchases during the month of March 2005 amounted to