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Southern Rim Parts estimates its manufacturing overhead to be $400,000 and its direct labor costs to be $1,000,000 for year 1

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Answer #1
Overhead rate 40% =400000/1000000
a
Overhead assigned:
Job 301 23600 =59000*40%
Job 302 33600 =84000*40%
Job 303 58000 =145000*40%
b
Actual manufacturing overhead 429000
Less: Overhead applied 336000 =840000*40%
Underapplied overhead 93000 Underapplied
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