a.

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $401,400; materials of $413,000 and direct labor of $223,000. During the year Adams incurred $424,000 in materials costs, $418,900 in overhead costs and $227,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.

$10,300 overapplied.

$17,500 overapplied.

$10,300 underapplied.

$17,500 underapplied.

$5,100 underapplied.

b.

Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $193,000 of raw materials on credit; issued materials to production of $210,000 of which $15,000 were indirect. Minstrel incurred a factory payroll of $154,000, paid in cash, of which $25,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $193,000 during the month, compute the amount of under- or overapplied overhead:

$39,000 overapplied.

$500 overapplied.

$39,000 underapplied.

$500 underapplied.

$38,000 overapplied.

c.

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,700 of direct materials and used $3,200 of direct labor. The job was not finished by the end of the month, but needed an additional $2,200 of direct materials in October and additional direct labor of $5,700 to finish the job. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October?

$12,800

$19,300

$30,600

$22,500

$26,400

d.

Lowden Company has an overhead application rate of 165% and allocates overhead based on direct material cost. During the current period, direct labor cost is $66,000 and direct materials used cost $74,000. Determine the amount of overhead Lowden Company should record in the current period.

$122,100.

$44,848.

$66,000.

$74,000.

$40,000