Question
Marigold Company manufactures a line of lightweight running shoes. CEO Mark Marigold estimated that the company would incur $2,787,680 in manufacturing overhead during the coming
Marigold Company manufactures a line of lightweight running shoes. CEO Mark Marigold estimated that the company would incur $2,787,680 in manufacturing overhead during the coming year. When Marigold Company uses direct labor hours as its manufacturing overhead application base, predetermined overhead rate is $12.67/DLH and when it uses machine hours as its manufacturing overhead application base, predetermined overhead rate is $5.32/MH. Additionally, he estimated the company would operate at a level requiring 220,022 direct labor hours and 524,000 machine hours. At the end of the year, Marigold Company had worked 214,000 direct labor hours, used 358,000 machine hours, and incurred $2,533,000 in manufacturing overhead.
If Marigold Company used direct labor hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year?
Overhead applied | $ |
Using direct labor hours as the application base, was manufacturing overhead under- or overapplied for the year? By how much?
Manufacturing overhead over applied or under applied by $ |
If Marigold Company used machine hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year?
Overhead applied | $ |
Using machine hours as the application base, was manufacturing overhead under- or overapplied for the year? By how much?
Manufacturing overhead overapplied or underapplied by $ . |
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