Vest Co.’s manufacturing costs for the period just ended wer…

Vest Co.’s manufacturing costs for the period just ended were as follows: Direct materials and direct labor – $700,000 Other variable manufacturing costs – $100,000 Depreciation of factory building and Manufacturing equipment – $80,000 Other fixed manufacturing overhead – $18,000   What amount should be considered product cost for external reporting purposes?

Gahagan Manufacturing provided the following information fro…

Gahagan Manufacturing provided the following information from its accounting records for 2019: Expected production –                  60,000 labor hoursActual production –                       56,000 labor hoursBudgeted overhead –                    $900,000Actual overhead –                          $870,000 How much is the overhead application rate if Gahagan bases the rate on direct labor hours?