Question
28) A company's predetermined overhead rate is applied at 75% of direct labor cost. How much overhead would be allocated to Job No. XYZ if
28) A company's predetermined overhead rate is applied at 75% of direct labor cost. How much overhead would be allocated to Job No. XYZ if it incurred total direct labor costs of $170,000?
29) Based on the following calendar year information:
Advertising expense | $ 38,800 |
Depreciation of factory equipment | 43,000 |
Depreciation of office equipment.. | 10,800 |
Direct labor. | 150,600 |
Factory utilities............... | 45,650 |
Rent on factory building | 51,400 |
Indirect labor. | 30,750 |
Sales commissions.. | 66,500 |
Interest expense............. | 3,650 |
Inventories, January 1: |
|
Raw materials. | 104,450 |
Work in Process | 87,250 |
Finished goods............ | 95,600 |
Inventories, December 31: |
|
Raw materials.. | 82,300 |
Work in Process. | 60,700 |
Finished goods. | 101,050 |
Raw materials purchases.. | 332,450 |
If overhead is applied at the rate of 110% of direct labor costs.
Then from the above information, determine:
a) the amount of actual Overhead incurred during the year;
b) the amount of overhead applied during the year;
c) Was overhead for the year under- or over-applied and by how much?
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