Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

all answers must be rounded Hallaway Inc. uses a job-order costing system with machine hours as the allocation base for overhead. The company uses normal

all answers must be rounded
image text in transcribed
image text in transcribed
image text in transcribed
Hallaway Inc. uses a job-order costing system with machine hours as the allocation base for overhead. The company uses normal costing to develop their overhead allocation rate. The following information is available at the beginning of the year: Estimate Estimated factory overhead costs $1,512,000 Estimated machine hours 84,000 On December 31 the following information was available: Job # Job # Description 780 790 Direct materials $15,600 $7,000 Direct labour $11,100 $5,000 Machine hours 170 80 Use the above information to answer the questions which follow. Job 780 was completed in December and the client was billed at cost plus 60%. The price of Job 780 was $ At the end of the year actual machine hours were 77,000; therefore, total overhead applied to all jobs for the year was $ At the end of the year actual factory overhead is $1,391,000. This means that factory overhead is a) Neither over- or under-applied b) Under-applied c) Over-applied The total over- or under-applied factory overhead for the year is $ Enter your answer as a positive number

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Introduction To Concepts Methods And Uses

Authors: Clyde P. Stickney, Roman L. Weil

9th Edition

0030259622, 978-0030259623

More Books

Students also viewed these Accounting questions

Question

3 > O Actual direct-labour hours Standard direct-labour hours...

Answered: 1 week ago