Drake Company manufactures quality gentlemen’s clothing. The following

selected financial information for the fiscal year 2018 is attached

Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2018: (Round dollar values & enter as whole dollars only.)

Part B
During March 2018, Kendrick Corporation recorded $17,000 of costs related to factory overhead. Kendrick’s overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $18,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 10,200 hours were actually worked. Use this information to determine (round & enter any final dollar answers to the nearest whole dollar):
1. the amount of factory overhead that was applied in March
2. the amount of factory overhead that was over or under applies
3. was the factory overhead was over applied or under applied

 ATTACHMENT PREVIEW Download attachment

Question13.png

Item
Amount
Sales
$100,000
Cost of Goods Manufactured
75,000
Direct Material Purchased
30,000
Factory Overhead
10,000
Work in Process – January 1
30,000
Work in Process – December
31
15,000
Direct Material – December
31
10,000
Finished Goods Inventory –
December 31
60,000
Net Income
15,000
Direct Materials used
30,000
Cost of Goods Sold
55,000

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