Anthony and cathy smith have been married for thirty-one years. they have always had a joint bank account, discuss big expenditu
1 answer:
You might be interested in
Answer:
adjusted COGS 1,529,500
Explanation:
<u>The first step,</u> is to determinate the overhead rate
expected overhead 638,250
the company uses direct labor hour as a cost driver
labor hours expected 37,000
rate = 638,250/37,000 = 17.25
<u>Second, </u>we calculate the applied overhead
actual labor hours x rate
34,000 x 17.25 = 586,500
<u>Third, </u>we check the actual overhead
indirect labor 148,000
other cost 450,000
actual overhead 598,000
<u>We now compare for overapplied or underapplied</u>
586,500 - 598,000 = -11,500
The actual cost were higher, we applied less overhead
So we need to increase the cost of good sold, because the inventory sold cost was 11,500 higher than we think.
cost of goods sold 11,500
factory overhead 11,500
COGS 1,518,000
+adjustment <u> 11,500 </u>
adjusted COGS 1,529,500