00:01
Once again, welcome to a new problem.
00:04
This time we're dealing with overheads.
00:09
So when you think about companies ' overhead costs, these allocations, these allocations are what we can call cost allocations are given for the, the production for the production of goods or services.
00:40
So when you're producing goods and services, there's always going to be some overhead costs.
00:45
And these happen to be extra expenses that are not directly, that are not directly connected, that are not directly connected, to production.
01:08
So if you're producing goods and services and the costs that are not direct, like, say, office rent expenses, then you're going to look at these ones as overhead costs.
01:25
We have a new problem and in this particular problem, we have an inventory account.
01:33
Account, so you're looking at an inventory account.
01:38
And the company itself is based on manufacturing, meaning that it's going to produce some goods for the market.
01:49
And it uses an overhead rate on the basis of the basis of direct direct.
02:02
Direct labor costs.
02:06
So we're looking at staff on the basis of direct labor costs.
02:11
The debit balance for this organizational business or manufacturing plant happens to be $4 ,400.
02:21
And that's the end of the posting.
02:26
There is a job in process and there is a sheet that does display this job in process and it shows that direct material is equivalent to $2 ,000.
02:47
And then we also have direct labor costs, direct labor costs, which happen to be equivalent to $800.
02:58
The goal is to determine, we're going to determine...