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Mela Company Mela Company uses a job order costing approach. Direct labor hours are used as the allocation base for overhead costs. At the beginning
Mela Company Mela Company uses a job order costing approach. Direct labor hours are used as the allocation base for overhead costs. At the beginning of the year, it was estimated that the company would use 468,000 direct labor hours. It was estimated that the corporation would incur $7,581,600 of manufacturing overhead costs. The company ended up using 452,000 direct labor hours during the year. The actual manufacturing overhead costs incurred during the year were $6,984,000. The company reported the following cost information for job #R182: Direct material cost $51,800 $20 Direct labor cost per hour Estimated labor hours used 320 Actual labor hours used 331 1) What is the pre-determined overhead rate for the year? 2) What is the total manufacturing overhead cost applied to job #R182? 3) What is the total manufacturing overhead cost applied across the year? 4) Is overhead overapplied or underapplied for the year? And by how much?
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