1) Overhead rate = 79680/2490 = 32 per hour
2) Overhead applied = 2439*32 = 78048
Actual overhead = 73170
Over applied overhead = 78048-73170 = 4878
3) Journal entry
Manufacturing overhead | 4878 | |
Cost of goods sold | 4878 | |
4) Total Cost
Direct material | 236 |
Direct labor (40*2) | 80 |
Overhead (40*32) | 1280 |
Total Job Cost | 1596 |
5) Quote = 1596*1.4 = $2234.40 or $2234
Cheyenne Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour...
Exercise 5.24 Buffalo Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Buffalo estimated that the total overhead costs would be $77,700 and that the total labour hours would be 2.590. At the end of the year, Buffalo obtained the actual overhead costs from the ledger and found that the shop had incurred $71,204 and had worked 2,543 labour hours. Compute the predetermined (budgeted) overhead rate. Overhead Rates SHOW...
Please solve for the incorrect answers! Exercise 5.24 Buffalo Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Buffalo estimated that the total overhead costs would be $77,700 and that the total labour hours would be 2,590. At the end of the year, Buffalo obtained the actual overhead costs from the ledger and found that the shop had incurred $71,204 and had worked 2,543 labour hours. Your answer is...
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