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Problema IV (20 Puntos) Guaraguao Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company
Problema IV (20 Puntos)
Guaraguao Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2018 for the company and for Job 62:
Company Job 325
Estimasted
Annual Cost
Direct materials $70,000 $5,500
Direct labor $30,000 $2,300
Manufacturing overhead costs $67,500
Machine hours 90,000 2,000
During 2018, the actual machine-hours totaled 94,000, and actual manufacturing overhead costs were $72,000.
Instructions:
- Compute the predetermined overhead rate.
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- Compute the total manufacturing costs for Job 325.
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- How much overhead is over or underapplied for the year for the company? State amount and whether it is over- or underapplied.
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- If Carpet Manufacturing sells Job 325 for $15,000, compute the gross profit.
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