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Question No. 2: What is underapplied overhead and overapplied overhead? What disposition is made of these amounts at the end

The Work in Process inventory account of a manufacturing Corporation shows a balance of $18,000 at the end of an accounting period.


The job cost sheets of the two uncompleted jobs show charges of $6,000 and $3,000 for materials, and charges of $4,000 and $2,000 for direct labor.


From this information, it appears that the Corporation is using a predetermined overhead rate, as a percentage of direct labor costs. Find the percentage.


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Answer #1

Answer page=0 Given details closing wip =$18000 direct materials value in closing ulpp- $ 6000 and other = $ 3000 Direct labo•os = ਰਖਿਹੜਪਰ ਹੜੇ ਤੋਂ 50-/ ) $ 9. 50 = G੦੦ 9 $. 00: $. 1 : ਇd

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