Question

For the month of April, Samuels, Inc. recorded the following transactions: a. $106,000 in raw materials were requisitioned for use in production. Of this amount, $83,000 was for direct materials and the remainder was for indirect materials. b. Total labor wages of $130,000 were incurred. Of this amount, $116,000 was for direct labor and the remainder was for indirect labor. C. Additional actual manufacturing overhead costs of $208,000 were incurred. d. A total of $249,000 in manufacturing overhead was applied to jobs. Required: Determine the underapplied or overapplied overhead for April. manufacturing overhead

Answer 1

Overhead used in production:
Indirect material (106,000-83,000)	23,000
Indirect labor (130,000-116,000)	14,000
Additional manufacturing ovehead costs	208,000
Total manufacturing overhead incurred	245,000
Less: Total manufacturing overhead applied	249,000
Overapplied manufacturing overhead	4,000