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E2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over-or Underappiled Overhead Costs [LO 2-3,2-4,

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At

Actual costs for the most recent month are summarized here $46, 128 2,510 3.230 Direct labor (1,930 hours) Indirect costs Ind

E2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over or Underapplied Overhead Costs [LO 2-3,2-4,

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overhead rate & 9.4 per DL houry Predetermined Calculation: Predetermined overhead rate = = $ 181, 420/ 19,300 hown $9.4 per(4) Overhead $ 4,598 calculation Manufacturing $22,740 Applied Overhead $ 18,142 Actual Balance (Underapplied) $4,598

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