Question
SweetTooth Corporation manufactures and sells Sweet candies which began operations on May 1, 2022, reported the following information. Estimated manufacturing overhead $726,000 Actual manufacturing overhead
SweetTooth Corporation manufactures and sells Sweet candies which began operations on May 1, 2022, reported the following information.
Estimated manufacturing overhead | $726,000 |
Actual manufacturing overhead | $704,000 |
Estimated direct labor cost | $484,000 |
Actual direct labor cost | $506,000 |
SweetTooth uses a normal cost system and applies manufacturing overhead to jobs on the basis of direct labor hours. Hourly pay is $22 per hour. On April 30 2023, job #859 was the only job that remained in production. That job had direct material and direct labor charges of $33,800 and $46,200, respectively.
Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places.
a) Determine the company's predetermined overhead rate.
Predetermined Overhead Rate =: $Answer per direct labor hour
b) Determine the amount of under- or overallocated overhead.
Actual Manufacturing Overhead: $Answer Allocated Overhead: $Answer AnswerUnderallocated overheadOverallocated overhead: $Answer
c) Calculate the balance the company would report as ending WIP inventory.
Direct Materials Used: $Answer Direct labor: $Answer Allocated Overhead: $Answer Total cost: $Answer
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