Figure 5-14
Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process.
Refer to Figure 5-14
Required:
A.)The actual overhead for December was $41,100,calculate the variance.
B.)Calculate the sales price for Job #684.
C.)Calculate the adjusted cost of goods sold for the month of December.
D.)If selling and administrative expenses for the month totaled $5,600,what is the company's operating income for December?

Question

Figure 5-14
Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows:
  Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process.
Refer to Figure 5-14
Required: 
A.)The actual overhead for December was $41,100,calculate the variance.
B.)Calculate the sales price for Job #684.
C.)Calculate the adjusted cost of goods sold for the month of December.
D.)If selling and administrative expenses for the month totaled $5,600,what is the company's operating income for December?

Quizplus · Accepted Answer

The Answer of Figure 5-14
Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows:
  Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process.
Refer to Figure 5-14
Required: 
A.)The actual overhead for December was $41,100,calculate the variance.
B.)Calculate the sales price for Job #684.
C.)Calculate the adjusted cost of goods sold for the month of December.
D.)If selling and administrative expenses for the month totaled $5,600,what is the company's operating income for December?

Figure 5-14 Deluxe Design Company Makes Custom Furniture.On December 1,there Were Two