Question

Vaughn Music Company makes custom marimbas and xylophones. Since much of the work on these musical instruments is done by hand, the company uses direct labor hours as its manufacturing overhead application base. The company's annual budgeted overhead costs for 73,300 direct labor hours totaled $586,400. (a) Assume that during the year, the company incurred manufacturing overhead totaling $584,400 for 73,300 direct labor hours. By how much was manufacturing overhead under-or overapplied for the year? (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Overhead $ (b) Assume that during the year, the company incurred manufacturing overhead totaling $584,400 for 74,550 direct labor hours. By how much was manufacturing overhead under-or overapplied for the year? (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45)) Overhead $ nes (c) Assume that during the year, the company incurred manufacturing overhead totaling $599,000 for 74,550 direct labor hours. By how much was manufacturing overhead under-or overapplied for the year? (Enter negative amount using either a negative sign preceding the number es. -45 or parentheses es. (451) Overhead

Answer 1

Answert Amount Particulars Estimated budgeted overhead estimated direct laboen hours Predes mined oves head rate : (586,400/73,300) 586,400.00 73,300,00 8.00 Actual manufacturing overhead 584,400.00 Applied manufacturing overhead: 586,400.00 (73,300x8) Quer applied overhead (586,400-584,400 2,000.00 Capplied overhead is more than actual oves head, overhead is overapplied) 584,400.00 596,400.00 18.000.00 Actual manufacturing overhead Applied manufacturing overhead (74,550 X 8) Over applied overhead (596,400- 584,400) Capplied overhead is more than acteal ouchead, cueshead is Quer applied). 599,000.00 596,400.00 Actual manufacturing owerhead Applied manufacturing overhead (74,550 X 8) ender applied overhead (596,400-599,000 capplied overhead is less than actual overheads over head is underapplied) 2,600.00