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Please help me with how to solve these questions. Thank you! 11:55 PM Thu Feb 11 73% Done Practice+Set+2+28 Chapter+329 Name: Samantha hinder Accounting 285
Please help me with how to solve these questions. Thank you!
11:55 PM Thu Feb 11 73% Done Practice+Set+2+28 Chapter+329 Name: Samantha hinder Accounting 285 Practice Set 2 (Chapter 3) 1. Hulk company uses direct labor hours as the allocation base for its overhead costs. At the beginning of the year, it was estimated that the company would use 40,000 direct labor hours. It was also estimated that the corporation would incur $586,000 of manufacturing overhead costs. The company ended up using 41,000 direct labor hours during the year. The actual manufacturing overhead costs incurred during the year were $713,400. The company reported the following cost information for job #007: Direct Material cost per unit $10 Direct labor cost per hour $20 Estimated labor hours used 17 Actual labor hours used 18 1) What is the pre-determined overhead rate for the year? (Answer: $14.65/DLH) 2) What is the total manufacturing overhead cost applied to job #007? (Answer: $263.7) 3) Is the company's manufacturing overhead for the year overapplied or underapplied? By how much? (Answer: underapplied by $112,750)Step by Step Solution
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