Dagostino Corporation uses a job-order costing system.The following data relate to the just completed month's operations.(1) Direct materials requisitioned for use in production, $154,000(2) Indirect materials requisitioned for use in production, $45,000(3) Direct labor wages incurred, $94,000(4) Indirect labor wages incurred, $119,000(5) Depreciation recorded on factory equipment, $44,000(6) Additional manufacturing overhead costs incurred, $83,000(7) Manufacturing overhead costs applied to jobs, $236,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000Use the following T-accounts to answer the following question. The total amount of manufacturing overhead actually incurred was:
A) $246,000
B) $291,000
C) $236,000
D) $247,000

Question

Dagostino Corporation uses a job-order costing system.The following data relate to the just completed month's operations.(1) Direct materials requisitioned for use in production, $154,000(2) Indirect materials requisitioned for use in production, $45,000(3) Direct labor wages incurred, $94,000(4) Indirect labor wages incurred, $119,000(5) Depreciation recorded on factory equipment, $44,000(6) Additional manufacturing overhead costs incurred, $83,000(7) Manufacturing overhead costs applied to jobs, $236,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000Use the following T-accounts to answer the following question.   The total amount of manufacturing overhead actually incurred was:
A) $246,000 
B) $291,000 
C) $236,000 
D) $247,000

Quizplus · Accepted Answer

The total amount of manufacturing overhead actually incurred is calculated by adding the indirect materials, indirect labor, depreciation on factory equipment, and additional manufacturing overhead costs incurred. 
$45,000 (Indirect materials) + $119,000 (Indirect labor) + $44,000 (Depreciation on factory equipment) + $83,000 (Additional manufacturing overhead costs incurred) = $291,000. Therefore, the best choice is B.

Dagostino Corporation Uses a Job-Order Costing System