Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4] [The following information applies to the questions displayed below.) Bunnell Corporation is a manufacturer

image text in transcribed

Required information The Foundational 15 (Algo) [LO3-1, LO3-2, LO3-3, LO3-4] [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: Raw materials Work in process Finished goods $ 75,500 $ 19,600 $ 59,400 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 $14.00 per direct labor-hour was based on a cost formula that estimated $560,000 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, $606,000. b. Raw materials used in production, $561,200. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services; direct labor, $510,000; indirect labor, $150,000; selling and administrative salaries, $257,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $382,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $410,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. g. Jobs costing $1,558,300 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 $3,075,000. The jobs cost $1,568,300 to manufacture according to their job cost sheets. Foundational 3-9 (Algo) 9. Is manufacturing overhead underapplied or overapplied for the year? By how much?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions

Question

What is max ( " programming is fun" )

Answered: 1 week ago

Question

3 > O Actual direct-labour hours Standard direct-labour hours...

Answered: 1 week ago