A 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 the previous year:
Manufacturing overhead: estimated: $50,000 actual: $55,000
Direct labour hours: estimated: #20,000 hrs actual: #24,000 hrs
A job completed during the year incurred the following costs:
Direct Materials $4,000
Direct labour $1,500 (at $5 per DLH)
What was the under applied or over applied overhead
for the year?
Overhead rate = Estimated overhead/Estimated labor hour
= 50000/20000
Overhead rate = $2.5 per labor hour
Overhead applied = 24000*2.5 = $60000
Actual overhead = $55000
Over applied overhead = 60000-55000 = $5000
A company uses a job order cost system and applies manufacturing overhead costs to jobs using...
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) What...
1. Anderson Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. Manufacturing overhead and direct labor hours were estimated at $70,400 and 22,000 hours, respectively. In June, Job 11461 was completed. Ma. terials costs on the job totaled $4,815 and labor costs totaled $2,325 at $7.50 per hour (310 hours worked on this job). At the end of the year, it was determined that the company worked...
Parker Corporation uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year manufacturing overhead and direct labor-hours were estimated at $80,910 and 27,900 hours, respectively, for the year. In June, Job #461 was completed. Materials costs on the job totaled $4,400 and labor costs totaled $1,836 at $5.40 per hour. At the end of the year, it was determined that the company worked 34,400 direct labor-hours for the...
Job-Order Costing U-Design-It Furniture Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $144,000 for the year and the estimated direct labor hours were 18,000 hours. In March, Job #175 was completed. Direct materials totaled $7,000. Total labor costs were $6,000 at $20 per hour. At the end of the year, it was determined that the company worked 17,000 direct labor hours...
Parker Corporation uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year manufacturing overhead and direct labor-hours were estimated at $80,910 and 27,900 hours, respectively, for the year. In June, Job #461 was completed. Materials costs on the job totaled $4,400 and labor costs totaled $1,836 at $5.40 per hour. At the end of the year, it was determined that the company worked 34,400 direct labor-hours for the...
Parker Corporation uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year manufacturing overhead and direct labor-hours were estimated at $73,440 and 27,200 hours, respectively, for the year. In June, Job #461 was completed. Materials costs on the job totaled $4,200 and labor costs totaled $1,664 at $5.20 per hour. At the end of the year, it was determined that the company worked 35,900 direct labor-hours for the...
The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $342,000 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year: 1. Raw materials purchased on account, $210,000. 2. Raw materials used in production (all direct materials), $195,000. 3. Utility bills incurred on account, $61,000 (95% related to...
Weinrich Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2019, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory. There was a $8,000 balance in...
Weinrich Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2019, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory. There was a $8,000 balance in...
Question 5 Bertrand Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2020, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $30,000, direct labour $15,200, and manufacturing overhead $20,200. As of January 1, Job No. 49 had been completed at a cost of $120,200 and was part of finished goods inventory. There...