Durham Company uses a job-costing system. The following transaction took place last year: Raw materials requisitioned for use in production, $40,000…

Durham Company uses a job-costing system. The following transaction took place last year:a. Raw materials requisitioned for use in production, $40,000 (80% direct and 20% indirect).b. Factory utilities cost incurred, $14,600.c. Depreciation recorded on plant equipment, $28,000. Three -fourths of the depreciation relates to factory equipment, and the remainder relates to selling and administrative equipment.Costs for salaries and wages were incurred as follows:Direct Labor…………………. $40,000Indirect Labor………………. $18,000Sales Commissions………. $10,000Administrative Salaries… $25,000e. Insurance costs incurred, $3,000 (80% relates to factory operations, and 20% relates to selling and administrative activities).f. Miscellaneous selling and administrative expenses incurred, $18,000.g. Manufacturing overhead was applied to production. The company applies overhead on the basis of 150% of direct labor costs.h. Goods that cost $130,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.i. Goods that had cost $120,000 to manufacture according to their job cost sheets were sold for $200,000.Required:1. Determine the under applied or over applied overhead for the year.2. Prepare an income statement for the year. (Hint: No calculations are required to determine cost of goods sold before any adjustment for under applied or over applied overhead.)

Solution 1Overhead CostIndirect Raw MaterialIndirect LaborFactory UtilitiesDepreciationInsurance Cost $ 8,000.00$ 18,000.00$ 14,600.00$ 21,000.00$ 2,400.00 Total actual overheads cost $…

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more