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Talsa's accountants estimate total overhead for each month will be $64,000. They will allocate overhead on the basis of direct labour cost. During the current
Talsa's accountants estimate total overhead for each month will be $64,000. They will allocate overhead on the basis of direct labour cost. During the current month, three jobs were worked on: Job 745 Job 746 Job 747 Direct material $24,000 $36,000 $56,000 $56,000 $72,000 Direct labour $40,000 Job 745 was completed and sold, Job 746 was completed and Job 747 is still in process. Budgeted direct labour cost for the month was $160,000 and actual overhead was $65,800. Assuming overhead was $2,000 underapplied and that this amount is considered material, the balance of work in process after allocation of the underapplied overhead based on overhead charged to the accounts during the period is: $115,073 $80,456 $113,727 oo $79,544
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