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Unformatted text preview: Comprehensive Problem I – Worth 50 points Part I – Worth 24 points The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of materials used in production. At the beginning of the most recent year, the following estimates were made as a basis for computing the predetermined overhead rate for the year: manufacturing overhead cost, $200,000; direct materials cost, $160,000. The following transactions took place during the year ( all purchases and services were acquired on account ): a. Raw materials purchased, $86,000. b. Raw materials requisitioned for use in production (all direct materials), $98,000. c. Utility costs incurred in the factory, $15,000. d. Salaries and wages incurred as follows: Direct labor, $175,000. Indirect labor, $70,000. Selling and administrative salaries, $125,000. e. Maintenance costs incurred in the factory, $15,000....
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This note was uploaded on 02/23/2011 for the course ACG 2071 taught by Professor Hubert during the Spring '10 term at Hillsborough.
- Spring '10
- Managerial Accounting