Problem:
1. Thunderbird uses a job-order cost system and applies factory overhead to production orders on the basis of direct labor costs. The overhead rates for '19x9 are 200 percent for Department A and 50 percent for Department B. Job 123, started and completed during 19x9, was charged with the following costs:
| |
Department
|
|
| |
A
|
B
|
|
Direct materials
|
$25,000
|
$ 5,000
|
|
Direct labor
|
?
|
30,000
|
|
Factory overhead
|
40,000
|
?
|
Determine the total manufacturing costs assigned to Job 123.