Question

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred $ 13,000 $ 1.60 2,600 $ 17,500 Direct materials Direct labor cost Actual direct labor-hours worked Job P $ 14,000 $ 28,900 1,700 JobQ $ 8,600 $13,600 800 6. What is the amount of underapplied or overapplied overhead? Total amount

Answer 1

Answers : The Amount Underapplied by $ 1000

13000 1.6 Estimated Total Fixed Manufactruing Overhead Estimated Varaible MOH per Direct Labor Hour Estimated Total Direct Labor Hours worked Total Actula Manufacturing Overhead Job P 2600 17500 Job O 14000 8600 28900 13600 1700 800 Direct Material Direct Labor Cost Actula Direct Labor Hours Worked 1.6 Predetermined overhead rate Variable Overhead Rate ADD: Fixed overhead Rate = (13000/2600) Answer Predetermined overhead rate 6.60 Per DLH

Over appied or under applied overheads Actula Overheads Less: Applied Overeheads (1700+800)*6.60 Overheads under Applied by (15600-14790) 17500 16500 1000