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Required information [The following information applies to the questions displayed below] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1 , the
Required information [The following information applies to the questions displayed below] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1 , the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $1150 per direct labor-hour was based on a cost formula that estimated $460,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year. a. Raw materials were purchased on account $618,000. b. Raw materials used in production, $569,400. Al of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labot, $410,000; indirect labot, $150,000; selling and administrative salaries, $338,000. d. Incurred various seling and administratve expenses (e.g, advertising. sales travel costs, and finished goods warehousingl $382,000 e. Incurred various manufacturing overhead costs (e.9. depreciation, insurance, and utilities) 5310,000. t Manufacturing overheod cost was applied to production. The company actually worked 4t000 direct labor-hours on all jobs during the yeat. 9. Jobs costing $1372,600 to manufacture according to their job cost sheets were completed during the year. h jobs were sold on account to customers during the year for a total of $3,202,500. The jobs cost $1,382,600 to manufocture according to their job cost sheets. 9. is manufocturing overhead underapplied or overapplied for the year? By how much
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