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Browning Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on the use of machine hours.
Browning Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on the use of machine hours. Selected information from the current year's operating budget is as follows: *manufacturing overhead: $450,000 *direct labor hours: 15,000 hours *machine hours: 25,000 hours In November, Job #A15 was completed. Actual direct materials cost for the job totaled $12,000. There were 700 actual labor hours worked on the job at a rate of $15.00 per hour. There were 650 machine hours used for Job #A15. The company sold the 200 units produced from this job at an average selling price of $400 per unit. The total product cost that appears on the job cost sheet is O $11,700 O $22,500 O none of these $35,100 O $34,200 For this question, assume that your answer to question #52 above is $50,000. Determine the gross profit rate earned from the sale of all units manufactured in Job #A15: 45.5% O 62.5% 42.9% 0 37.5% none of these For this question, assume that the predetermined overhead rate (POHR) is $20 per machine hour. At the end of the year, it was determined that the company actually worked 16,000 direct labor hours, actually used 25,500 machine hours for the year and incurred $470,000 in actual manufacturing overhead costs. Determine the underapplied or overapplied manufacturing overheard for the year. Onone of these O $40,000 overapplied 0 $30,000 overapplied O $60,000 overapplied O $40,000 underapplied
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