E Quick Tour TY Search Annotations Accessibility Bookmark Print eTextbook: Principles of Cost Accounting P4-14. Determining Overhead Rates, Using Direct Labor Cost, Direct Labor Hour, and Machine Hour Methods; Determining Job Cost; Computing Underapplied and Overapplied Overhead LO6 LO7 Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used estimated factory overhead, $60,000; estimated materials costs, $50,000; estimated direct labor costs, 560,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was $80,000, and the production statistics on November 30 are as follows: Job Materials Costs $5,000 101. 7,000 102... 103 104 Direct Labor Costs $ 6,000 12.000 13.500 15,600 29,000 2400 578 500 Direct Labor Hours 1,000 2,000 2,500 2,800 4.500 400 13.000 8.000 9.000 10,000 11 000 $50.000 Machine Hours 3,000 3,200 4.000 3400 6,500 1,500 21,800 Date Jobs Completed Nov. 10 Nov. 14 Nov. 20 In proce Nov. 26 In process 105 106... Total REQUIRED: Critical Thinking Problem Nur Minica 417 PM Quick Tour Print Search Annotations Ac 104 105 9,000 10,000 11,000 $50,000 15.500 29,000 2.400 $78,500 2,600 4.500 400 105 Total 3.400 6,500 1,500 21,500 In produse Nov. 26 In process 13,000 REQUIRED: Critical Thinking Problem 1 Compute the predetermined rate, based on the following: a Direct labor cost b. Direct labor hours c Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods 4. Which method would you recommend? Why