Problem #2 LMN Company is a landscaping company. Factory overhead is allocated on the basis of direct labor hours. For 2016, Factory overhead is estimated to be $385,000 with 10,000 direct labor hours for the year.

How much is the predetermined overhead rate ____38.5______

LMN is comparing the costs of several jobs that were started and completed during the year. The following is the information:

	Smith Job	West Job	Nichols Job
Direct Materials	6,000	8,500	7,800
Direct Labor hours	86	100	92
Direct Labor cost	4,300	5,000	4,600
Actual factory overhead costs	3,612	4,800	5,152

Using Actual costing, compute the cost of each job:

	Smith Job	West Job	Nichols Job
Direct Materials
Direct Labor cost
Factory Overhead cost
Total Actual Cost

Using Normal costing, compute the cost of each job:

	Smith Job	West Job	Nichols Job
Direct Materials
Direct Labor cost
Factory Overhead cost
Total Actual Cost

Determine the over or under applied overhead for each job:

	Smith Job	West Job	Nichols Job
Actual Cost
Applied factory overhead
Over or under applied factory overhead