Question

question 4: Marceline Co. makes made to order guitars. One of the jobs Marceline Co. worked on during the month was ob Vamp, which used $1,200 in direct materials, 5210 in direct labor costs(paid at $15 an hour) and 125 machine hours. They use normal costing to help track costs for the guitar orders they fill and use machine hours as their allocation base. At the beginning of the month, Marceline Co. believes they will use 1,500 direct labor hours, 7,500 machine hours and have $ 17,700 in manufacturing overhead costs. At the end of the month, Marceline Co. finds they used 1,450 direct labor hours, 7,550 machine hours and had $17.610 in manufacturing overhead costs for all their jobs. With this information, please solve for the following: a. The budgeted manufacturing overhead allocation rate: b. Total cost applied to Job Vamp: c. Whether the manufacturing overhead was over- or under-applied for the month: d. How much was the manufacturing overhead over/under-applied by

Answer 1

as per HomeworkLib policy, I'm obliged to answer first complete question. Kindly ask remaining questions in a seperate question budgeted manufacturing overhead allocation rate budgeted manufacturing overhead costs/ budgeted machine hours budgeted manufacturing overhead allocation rate $17,700 7,500 4 (a) $2.36 budgeted manufacturing overhead allocation rate = per machine hour total cost applied to job vamp direct materials cost direct labor cost + allocated manufacturing overheads 4 (b) total cost applied to job vamp direct materials cost +direct labor cost + (machine hours used by job vamp* budgeted manufacturing overhead allocation rate) total cost applied to job vamp $1,200+ $210 (125 * $2.36) total cost applied to job vamp $1,200 +$210$295 $ 1,705 total cost applied to job vamp 4 c) total manufacturing overheads applied total actual machine hours * budgeted manufacturing overhead allocation rate total manufacturing overheads applied 7,550* $2.36 total manufacturing overheads applied total actual manufacturing overheads $17,818 $17,610 the manufacturing overhead was over-applied for the month reason - because the applied manufacturing overheads applied are more than the actual manufacturing overheads over-applied manufacturing overhead total manufacturing overheads applied total actual manufacturing overheads 4 (d) over-applied manufacturing overhead $17,818 - $17,610 $208 the manufacturing overhead was over-applied by