Question

Spruce Company uses a job costing system. Spruce Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31. Cost of goods manufactured $124,600 Cost of direct materials used $43,000 Cost of direct labor ($30 per hour) $76,800 Work in process inventory, August 1 $15,500Manufacturing overhead cost is allocated at the rate of $19 per direct labor hour. What is the amount of allocated manufacturing overhead costs for August

Answer 1

$48,640

Step-by-step explanation:

With regards to the above, first we have to compute the direct labor hours.

Direct labor hours = Direct labor cost / Per hour rate

= $76,800/30

= 2,560 hours

Now, the allocated manufacturing overhead cost equals

= Direct labor hours × Manufacturing overhead rate

= 2,560 × $19

= $48,640