Direct labor cost = Total factory payroll - Indirect labor = $150,000 - $40,000 = $110,000
Predetermined overhead rate = 150% of direct labor cost
Therefore,
Applied overhead = $110,000 x 150% = $165,000
And,
Actual overhead costs incurred = $167,800
Applied overhead is less than the actual overhead costs incurred. That means, overhead is underapplied.
Underapplied overhead = Actual overhead costs incurred - Applied overhead = $167,800 - $165,000 = $2,800
Thus,
The correct answer is $2,800 underapplied.
10 Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198.000 of...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $206,000 of raw materials on credit; issued materials to production of $203,000 of which $22,000 were indirect. Minstrel incurred a factory payroll of $158,000, of which $32,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $203,000 during the month, compute the amount of under-or overapplied overhead: Multiple Choice $34,000 overapplied. o $14,000...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $208,000 of raw materials on credit; issued materials to production of $205,000 of which $20,000 were indirect. Minstrel incurred a factory payroll of $160,000, of which $30,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $189,000 during the month, compute the amount of under-or overapplied overhead: Multiple Choice Ο O $6,000 underapplied....
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $196,000 of raw materials on credit; issued materials to production of $207,000 of which $18,000 were indirect. Minstrel incurred a factory payroll of $151,000, of which $28,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $186,000 during the month, compute the amount of under or overapplied overhead: A. $1500 overapplied B. $1500...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $205,000 of raw materials on credit; issued materials to production of $202,000 of which $23,000 were indirect Minstrel incurred a factory payroll of $157,000, of which $33,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $196,000 during the month, compute the amount of under- or overapplied overhead: Multiple Choice $10,000 overapplied. $39,500...
Minstrel manufacturing uses a job order costing system. During one month, minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead of 150% of direct labor costs. the journal entry to record the factory payroll is:
Part 1 Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $216,000 of raw materials on credit; issued materials to production of $210,000 of which $34,500 were indirect. Minstrel incurred a factory payroll of $159,000, paid in cash, of which $44,500 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel's beginning and ending Work in Process Inventory are $17,000 and $30,000 respectively. Compute the cost of product transferred...
Minstrel Manufacturing uses a job order costing system.During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the application of factory overhead to production is:
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the issuance of materials to production is: Multiple Choice Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000. Debit Work...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the išsuance of materials to production is: Multiple Choice Debit Work in Process Inventory $195,000; credit Row Materials Inventory $195,000....
Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 we indirect. Minstrel incurred a factory payroll of $150,000, paid in cash, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the purchase of materials is: o Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000. o Debit...