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Required: Determine the following :a . Calculation of estimated total labor that was expected for 2 0 XX . ( expected persons times hours
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Determine the following :a Calculation of estimated total labor that was expected for XXexpected persons times hours times rateb Predetermined overhead rate for year XXc Overhead cost applied to each of the six jobs during year XXd Over or underapplied at yearend XXAssuming that any over or underapplied overhead is not material, prepare the adjusting entry allocate anyover or underapplied overhead to Cost of Goods Sold at the end of year XXHint: COGS has a $ credit balance at year end.
Bigsby Company's manager estimated 20XX's total direct labor cost assuming 100 persons working an average of 2,000 hours each at an average wage rate of $18 per hour. The manager also estimated the following manufacturing overhead costs for year 20XX. Indirect labor Factory supervision $ 319,200 240,000 Rent on factory building 140,000 Factory utilities 100,000 Factory insurance expired 68,000 Depreciation--Factory equipment 480,000 Repairs expense--Factory equipment 60,000 Factory supplies used 68,800 Miscellaneous production costs 36,000 Total estimated overhead costs $ 1,512,000
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