Question
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 146,000 and estimated factory overhead is $1,051,200. The following information is for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials Work-in-process (All Job X) Finished goods Materials purchases Direct materials requisitioned: Job X Job Y Direct labor hours: Job x Job Y Labor costs incurred: Direct labor ($7.30 per hour) Indirect labor Factory supervisory salaries Rental costs: Factory Administrative offices Total equipment depreciation costs: Factory Administrative offices Indirect materials used $ 25,300 54,700 106,900 $170,000 $ 75,300 69,300 8,300 6,800 $110,230 40,100 12,400 $ 10,600 4,500 $ 11,700 4,100 $ 30,100 The underapplied or overapplied overhead for September is: Multiple Choice $15,360 overapplied. $3,820 overapplied. $3,820 underapplied. $16,455 underapplied.
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