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Solar World Incorporated is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual
Solar World Incorporated is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 143,000 and estimated factory overhead is $986,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $25,000 Work-in-process (All Job X) 54,400 Finished goods 106,600 Materials purchases $167,000 Direct materials requisitioned: Job X $75,000 Job Y 69,000 Direct labor hours: Job X 8,000 Job Y 6,500 Labor costs incurred: Direct labor ($7.00 per hour) $101,500 Indirect labor 32.100 Factory supervisory salaries 12,100 Rental costs: Factory Administrative offices Total equipment depreciation costs: Factory Administrative offices Indirect materials used The underapplied or overapplied overhead for September is: O $11.850 underapplied. O $11.850 overapplied. O $12.900 underapplied, O $7,050 underapplied. O$7,050 overapplied $ 10,300 4,200 $11.400 3,800 $27,100 4
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