Question

Question 7 Not complete Marked out of 4.00 P Flag question Determine and Use Overhead Rate The following selected ledger accounts of Cameron Company are for February (the second month of its accounting year): Materials Inventory Feb. 1 balance 81.900 February credits 293,800 February debits 270,400 Manufacturing Overhead February debits 356.720 Feb. 1 balance 30.160 February credits 354,510 Work in Process Inventory Feb. 1 balance 58.240 February credits 897.000 February debits: Direct material 274,000 Direct Labor 393.900 Man overhead 354,510 Wages Payable February debits 503.100 Feb. 1 balance 117.000 February credits 460,200 Finished Goods Inventory Feb, 1 balance 198.900 February credits 997,620 February debits 897,000 a. Determine the amount of indirect material requisitioned for production during February $ 0 b. How much indirect labor cost was apparently incurred during February? $0 c. Calculate the manufacturing overhead rate based on direct labor cost. 0 96 d. Was manufacturing overhead for February under-or overapplied, and by what amount? Manufacturing overhead was by 5 0 for February Was manufacturing overhead for the first two months of the year under or overapolied, and by what amount

Answer 1

Answer:
(a)
Amount of indirect material requisitioned for production        = Materials Inventory Credits (-) Direct material        = $ 293,800 (-) $ 274,000	$ 19,800
(b)
Indirect labor cost incurred            = Wages Payable Credits (-) Direct Labor        = $ 460,200 (-) $ 393,900 )	$ 66,300
(c )
Manufacturing overhead rate              = Manufacturing Overhead Costs / Direct Labor Costs               = $ 354,510 / $ 393,900	90%
(d)
Manufacturing overhead was Over applied by $ 2,210 ( $ 354,510 (-) $ 356,720 )	$ 2,210
(e)
Manufacturing overhead was Under applied by ( $ 30,160 (-) $ 2,210 )	$ 27,950
(f)
Cost of production completed	$ 897,000
(g)
Cost of goods sold =	$ 997,620