Question

Please give answers in the yellow boxes as an excel function and using cell references when needed.

Н 1 Stanford Enterprises uses job-order costing. 2 The allocation base for overhead is direct labor hours. 3 4 Data for the year just ended: 5 Estimated total manufacturing overhead cost 6 Estimated total direct labor hours 7 Actual total direct labor hours $ 275,000 25,000 27,760 9 Actual costs for the year: $375,000 Purchase of raw materials (all direct) 10 $536,300 $302,750 Direct labor cost 11 Manufacturing overhead costs 12 13 Ending 11,375 Beginning 15,000 14 Inventories: Raw materials (all direct) Work in process Finished goods 15 27,875 22,350 16 34,600 26,450 17 18 19 Use the data to answer the following. 20 21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead: Actual manufacturing overhead cost 22 Predetermined overhead rate 23 Actual direct labor hours 24

Answer 1

Computation of overapplied OH
			A	Estimated Mnf. OH Cost	$275000
B	Estimated direct labour hrs.	25000 hrs.
C	pre-determined OH rate (A/B)	$11 per hr.
D	Actual direct labour hrs.	27760 hrs.
E	Applied Overheads (D×C)	$305360
F	Actual OH incurred	$302750
G	Overapplied OH   (F-E)	$2610

schedule of cost of goods manufactured
			Direct materials:
Raw materials inventory beginning	15000
Add: Purchases of raw materials	375000
Total raw materials available	390000
Deduct: Raw materials inventory ending	-11375
Raw materials used in production		378625
Direct labor		536300
Manufacturing OH applied to WIP		305360
Total Manufacturing cost		1220285
Add: Beginning WIP inventory		27875
Deduct: Ending WIP inventory		-22350
Cost of goods manufactured		1225810

schedule of cost of goods sold
		Finished good inventory, beginning	34600
Add: Cost of goods manufactured	1225810
Cost of good available for sale	1260410
Deduct : Finished goods inventory, ending	-26450
Unadjuted cost of goods sold	1233960
(overapplied OH)	-2610
Adjusted cost of goods sold	1231350