I'm trying to compare/contrast the two problems I completed below. I already solved them, I just have a question about them both. Why is it that in question 18, the numerator in the predetermined overhead rate equal to the Applied Overhead rate (1200). In contrast in question 17, the numerator in the predetermined overhead rate is not equal to Applied Overhead... It's 135000 in the numerator and applied overhead is 150000, in question 17. Why is this?

.. 135 000 1.5 c) $800,000 d) $400,000 $ - 480000 e) None of the above 1 00 -Fi 0.000 17. Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Iis predetermined overhead rate was based on a cost formula that estimated $135,000 of manufacturing overhead and an estimated allocation base of $90,000 in direct labor cost. The company has provided the following data: BrgAM 29000 Beginning Ending RAM+ 130000 Raw Malenas Inventory (all *$29.000 $11,000 direct) RM 159ooo Work in Process Invcolory 45,000 36,000 -Erik AM - WOOO po Fused Goods Inventory - 71.000 61,000 The fo c us incurred during the veder Bu med 140 000 Purchase of raw materials (all direct) - $130.000 KM Direct labeu o - $100.000 Manurung overleados tot 100.000 Suppose the company loss out my under over applied overhead cost to Cost of Goods Sold. How much was the company's used cast of Goods Sold $377,000 40 7000 C +MONA 160,000 b. $357,000 c. $337,000 d. $363.000 e. None of the above Uno 90.000 1.5.4 100,000 = (150,000) 14-8000 $110.000 DE TH$ 399000 BWP - 45000 TwiP 443000 WP 36 100 O 0.000 - Cast of coats Manito, Corto Monts407000 thad sword logs -End wip - 36.000 90.000 Qapplied 317000 Alags Cost of Goods ansfor, 407000 18. The Work in Process inventory account of a manufacturing company shows a balance of $2,600 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $400 and $200 for direct materials, and charges of $300 and $500 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor cost (5) of a. 80% WIP aboo b. 125% c. 100% 400 200 DM. 150% e. 200% POOR 300 500 DL bay End Maut : yo * 800 2400= 400 & 800 & Applitch doo - 1400 & Applian Applind ott 1200 ?. 1 = 1200 1900 = PDOM * 800 1.5 : 150