Question

Kody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour $ $ 153,000 651,000 4.50 Required: 1. Compute the predetermined overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predetermined overhead rate per MH 2. During the year Job 500 was started and completed. The following information was available with respect to this job: Direct materials requisitioned Direct labor cost Machine-hours used $ $ 310 290 32 Compute the total manufacturing cost assigned to Job 500. (Round your intermediate calculations and final answer to 2 decimal places.) Total manufacturing cost 3-a. During the year the company worked a total of 145,900 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,278,625. What is the amount of underapplied or overapplied overhead for the year? (Round your intermediate calculations to 2 decimal places.) Manufacturing overhead cost

Answer 1

1
Predetermined overhead rate	8.75	per MH	=4.50+(651000/153000)
2
Direct materials	310
Direct labor cost	290
Manufacturing overhead	280		=32*8.75
Total manufacturing cost	880
3
Actual Manufacturing overhead	1278625
Manufacturing overhead applied	1276625		=145900*8.75
Manufacturing overhead cost underapplied by	2000