Question

The following information is available for Lock-Tite Company, which produces special order security products and uses a job order costing system. April 30 May 31 $ $43, eee 10,200 63,889 52,000 21,309 3 5,600 Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost 210,000 345,000 15,00 80,eee 120.de 1,400,000 Determine whether there is over or underapplied overhead. Factory Overhead Actual overhead Other overhead costs Underapplied overhead < Prev 10 of 10 !! Next Search

Answer 1

Factory overhead. | $185,500 Overhead applied. Indirect material Indirect labor other overhead. $15,000 80,000 120,000 anderapplied overhead $29,500 over applied cou) Underapplied Overhead Indirect material = $ 15,000 Indirect 80,000 labor Other Orerhead 120,000 215,000 Total actual oH incurred Applied overhead factory Payrol less: Indirect labor cost of direct laber - 345,000 - C 80,000) 265,000 used = $185,500 factory overhead applied. C265,000 x 70%.) Actual or incurred under applied overhead = 215,000 = 29,500 factory Overhead. .00 Actual overhead Applied orerhead. aromeca $ 215,000 underapplied overhead $29,500

Actual Overhead cost includes Other Overhead cost.

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