Quark Spy Equipment manufacturers espionage equipment. Quark uses a job-order costing system and applies overhead to jobs on the basis of direct labor-hours. For the current year, Quark estimated that it would work 64,000 direct labor-hours and incur $13,120,000 of manufacturing overhead cost. The following summarized information relates to January of the current year. The raw materials purchased include both direct and indirect materials.
Raw materials purchased on account $ 926,100
Direct materials requisitioned into production $ 852,700
Indirect materials requisitioned into production $ 64,700
Direct labor cost (5,200 hours @ $32 per hour) $ 166,400
Indirect labor cost (5,400 hours @ $22 per hour) $ 118,800
Depreciation on the factory building $ 138,600
Depreciation on the factory equipment $ 648,000
Utilities for the factory $ 58,300
Cost of jobs finished $ 1,827,100
Cost of jobs sold $ 1,743,700
Sales (all on account) $ 2,615,900