Question

Sai Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 6 Estimated Actual Manufacturing overhead costs $50,000 $54,000 Direct labour-hours 20,000 24,000 hours hours Job #461 was completed during the year and the following costs had been incurred on that job: Direct materials $4,000 $1,500 (at $5 per direct Direct labour labour hour)

Answer 1

- Sel Predelen minded Manufacturing Duechead Raleo) Estimated Manufacturing Cost Estimated Direct labour Hours a $ 50,000 - 20,000 hours __ $ 2.50 per Direct labour Hour Actual Mamuitecturing Overhead = $54,000 Applied Manufacturing Overhead => = Actual Direct labour Howrs X Predetermined manufeckung OH 1 Rate. . 24000 hours X $2.50 per Direct labour Hour $ 60,000

splied Overhead > Actual Overhead them the manwife.cturing Overleed is Over applied Overcxpplied Manufacturing Overhead => - Applied Manufacturing out albeed - Actueel Manufachering Overhead = $60,000 - $54.000 $ 6,000 Overapplied wered option (A.) $6000 Over applied.