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see attachment above 3. The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are
see attachment above
3. The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year. The following information was taken from the annual budget: Direct labor hours 84,000 Machine hours 120,000 Manufacturing costs Direct labor Direct materials Indirect labor Electric power Payroll taxes Machine maintenance and repair Factory supplies Factory heat and light Depreciation, taxes, and insurance: Factory buildings Machinery 6525,000 180,000 75,000 48,000 12,600 9,200 16,000 14,000 135,000 320,200 $1.295.000 Actual results for the year follow: Direct labor hours Machine hours 85,000 110,000 Manufacturing costs Direct labor Direct material Factory overhead 540.000 200,000 625,000 $1.365.000 2 Determine the following factory overhead application rates under each of the following methods. Show your calculations (30 points) (1) Direct labor cost (2) Direct labor hours (3) Machine hours b Determine the under-or overapplied factory overhead under each of the following methods: (10 points) (1) Direct labor cost Direct labor hours (3) Machine hoursStep by Step Solution
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