Question

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181.240 Estimated direct labor cost was $490,530 for 19,700 hours Actual costs for the most recent month are summarized here Total Cost 49.054 hem Description Direct labor (1,970 hours) Indirect oosts Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries Seling expenses 2.500 3.360 3.350 4,810 5,710 1,300 1,820 4270 ,400 Required 1. Calculate the predetermined overhead rate (Round your answer to 2 decimal places Per DL Hour 2. Caloulate the amount of applied manufacturing overhead

Answer 1

1)	predetermined overhead rate
	estimated manufacturing overhead cost/estimated direct labor hours
	181,240/19700
	9.2
	predetermined overhead rate			9.2	per DL Hr
2)	Applied manufacturing overhead			18124
	actual labor hrs * predetermined overhead rate
	1,970*9.2
	18124
3)	Actual Manufacturing overhead cost				22,850
	Indirect labor			2,500
	indirect materials			3,360
	Factory rent			3,350
	Factory supervision			4,810
	Factory depreciation			5,710
	Factory janitorial work			1,300
	Factory insurance			1,820
	Actual manufacturing			22,850
4)	overhead	under applied		4,726
	( actual MOH cost - applied MOH