Question

Fairfield company applies manufacturing overhead to products at a predetemined rate of $45 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here ltem Direct materials Indirect materials Hourly labor wages Description Used on Jobs 101 and 102 Used on multiple jobs 750 hours $25 per hour 200 hours for Job 101 300 hours for Job 102 250 hours for Job 103- Total Cost 87,500 27,500 $ 5,000 7,500 Factory supervision Production engineer Factory jantorial work Selling, general, and administrative salaries Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.) 625018,750 3,500 7,500 2,000 8,500 7,000 Other selling, general, and administrative costs (office rent, insurance, depreciation, etc) 5,500 1. Post the preceding information to Fairfield Company's Manufacturing Overhead T-account. Manufacturing Overhead Balance 2. Compute over- or underapplied manufacturing overhead Manufacturing Overhead

Answer 1

1) Manufacturing overhead T account

Factory supervision	3500	33750	work in process
Production engineer	7500
Factory janitorial work	2000
Other manufacturing overhead	7000
	20000	33750
Balance		13750

2) Over applied overhead = 33750-20000 = $13750