Exercise 7-29 (Algo) Predetermined Overhead Rates (LO 7-3)

Southern Rim Parts estimates its manufacturing overhead to be $418,500 and its direct labor costs to be $930,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $52,000 for Job 301, $77,000 for Job 302, and $110,000 for Job 303. For the year, actual manufacturing overhead was $464,000 and total direct labor cost was $847,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates.

Required:

a. How much overhead was assigned to each of the three jobs, 301, 302, and 303?

JOB 301:

JOB 302:

JOB 303:

b. What was the over- or underapplied manufacturing overhead for year 1?

(OVERAPPLIED or UNDERAPPILED) manufacturing overhead:________________