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    Naranjo Company Designs Industrial Prototypes For Outside Companies Budgeted Overhead

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    Amit Pandey
    Naranjo Company designs industrial prototypes for outside companies. Their budgeted overhead for the year was $260,000 and budgeted direct labor hours were 20,000 hours. During June, Naranjo worked on four jobs - Jobs 39 and 40 were completed, Job 39 was sold at 130% of cost, and Job 40 was held in inventory due to the customer's financial difficulties. Jobs 41 and 42 remained unfinished at the end of the month.

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    Naranjo Company Designs Industrial Prototypes For Outside Companies Budgeted Overhead

    Uploaded by

    Amit Pandey
    234 views1 page
    Naranjo Company designs industrial prototypes for outside companies. Their budgeted overhead for the year was $260,000 and budgeted direct labor hours were 20,000 hours. During June, Naranjo worked on four jobs - Jobs 39 and 40 were completed, Job 39 was sold at 130% of cost, and Job 40 was held in inventory due to the customer's financial difficulties. Jobs 41 and 42 remained unfinished at the end of the month.

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    Naranjo Company designs industrial prototypes for outside companies. Their budgeted overhead for the year was $260,000 and budgeted direct labor hours were 20,000 hours. During June, Naranjo worked on four jobs - Jobs 39 and 40 were completed, Job 39 was sold at 130% of cost, and Job 40 was held in inventory due to the customer's financial difficulties. Jobs 41 and 42 remained unfinished at the end of the month.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    234 views1 page

    Naranjo Company Designs Industrial Prototypes For Outside Companies Budgeted Overhead

    Uploaded by

    Amit Pandey
    Naranjo Company designs industrial prototypes for outside companies. Their budgeted overhead for the year was $260,000 and budgeted direct labor hours were 20,000 hours. During June, Naranjo worked on four jobs - Jobs 39 and 40 were completed, Job 39 was sold at 130% of cost, and Job 40 was held in inventory due to the customer's financial difficulties. Jobs 41 and 42 remained unfinished at the end of the month.

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    © All Rights Reserved
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    Solved: Naranjo Company designs industrial prototypes for

    outside companies Budgeted overhead


    Naranjo Company designs industrial prototypes for outside companies Budgeted overhead

    Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for
    the year was $260,000, and budgeted direct labor hours were 20,000. The average wage rate
    for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four
    jobs. Data relating to these four jobs follow:

    Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were
    completed; Job 39 was sold at 130 percent of cost. (Naranjo had originally developed Job 40 to
    order for a customer; however, that customer was near bankruptcy and the chance of Naranjo
    being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer
    worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41
    and 42 remain unfinished at the end of the month.

    Required:

    1. Calculate the overhead rate based on direct labor cost.

    2. Set up a simple job-order cost sheet for all jobs in process during June.

    3. What if the expected direct labor rate at the beginning of the year was $20 instead of $25?

    What would the overhead rate be? How would the cost of the jobs be affected?

    Naranjo Company designs industrial prototypes for outside companies Budgeted overhead

    ANSWER
    https://solvedquest.com/naranjo-company-designs-industrial-prototypes-for-outside-companies-
    budgeted-overhead/

    Reach out to [email protected] for enquiry.


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