Question

Facebook Facebook George Wilms During 2019. Mayco expected Job No. 59 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Mayco applied overhead based on 150% of direct labor cost. Actual production required an overhead cost of $295,000 $570,000 in materials used, and $220,000 in labor. All of the goods were completed. How much is the amount of over-or underapplied overhead? O $35.000 overapplied O $5,000 underapplied O $5,000 overapplied O $35.000 underapplied Question 13 5 pts Mayco applies overhead on the basis of 140% of direct labor cost. Job No. 501 is charged with $240,000 of direct materials costs and $320,000 of direct labor costs. The total manufacturing costs for Job No. 501 is O $1,000,000 24 hulu 3 $ X 5 & 7 6 8 9 O E R T Y o P F G H J K K С V B N M 36

Answer 1

Solution:

Answer 12. The answer is $35,000 overapplied.

Applied overhead = 150% of direct labor cost

= 150% of $220,000 = $330,000

Actual overhead = $295,000

Applied overhead is higher than actual overhead so it is over applied overhead

Over applied overhead = $330,000 - $295,000 = $35,000

Answer 13. The answer is $1,008,000.

Calculation of total manufacturing costs for Job No. 501

Direct Material	$240,000
Direct Labor costs	$320,000
Manufacturing overhead (140% of direct labor costs)	140% of $320,000 = $448,000
Total Manufacturing costs	$1,008,000

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