Question
The following information applies to the questions displayed below.] Tiana Shar, the controller for Caesar Glassware Company, is in the process of analyzing the overhead
The following information applies to the questions displayed below.]
Tiana Shar, the controller for Caesar Glassware Company, is in the process of analyzing the overhead costs for the month of November. She has gathered the following data for the month. |
Labor | ||
Direct-labor hours: | ||
Job 57 | 3,500 | |
Job 58 | 3,000 | |
Job 59 | 2,000 | |
Labor costs: | ||
Direct-labor wages | $ | 221,000 |
Indirect-labor wages | 16,000 | |
Supervisory salaries | 6,500 | |
Material | ||
Inventories, November 1: | ||
Raw material and supplies | $ | 10,000 |
Work in process (job 57) | 52,000 | |
Finished goods | 113,000 | |
Purchases of raw material and supplies: | ||
Raw material | $ | 132,000 |
Supplies (indirect material) | 16,000 | |
Direct material and supplies requisitioned for production: | ||
Job 57 | $ | 44,000 |
Job 58 | 37,500 | |
Job 59 | 25,500 | |
Supplies (indirect material) | 12,000 | |
Total | $ | 119,000 |
Other | ||
Building occupancy costs (heat, light, depreciation, etc.) | ||
Factory facilities | $ | 6,400 |
Sales offices | 1,600 | |
Administrative offices | 1,000 | |
Total | $ | 9,000 |
Production equipment costs: | ||
Power | $ | $4,100 |
Repairs and maintenance | 1,500 | |
Depreciation | 1,500 | |
Other | 1,000 | |
Total | $ | 8,100 |
The firms job-order costing system uses direct-labor hours (measured at practical capacity) as the cost driver for overhead application. In December of the preceding year, Shar had prepared the following budget for direct-labor and manufacturing-overhead costs for the current year. The plant is theoretically capable of operating at 150,000 direct-labor hours per year. However, Shar estimates that the practical capacity is 120,000 hours in a typical year. |
Manufacturing Overhead | ||
Direct-Labor Hours | Variable | Fixed |
100,000 | $325,000 | $216,000 |
120,000 | 391,200 | 216,000 |
140,000 | 455,000 | 216,000 |
During November the following jobs were completed: |
Job 57 | 10 oz. water glasses |
Job 58 | 5 oz. juice glasses |
Assist Shar by making the following calculations. _______________________________________________________________________________ Above is the listed need to know material. i need to find the actual manufacturing overhead & Calculate the overapplied or underapplied overhead for November
5. Compute the actual manufacturing overhead incurred during November. actual manufacturing overhead=????? 6. Calculate the overapplied or underapplied overhead for November. (Do not round your intermediate calculations. Round your final answer to the nearest dollar amount.) actual manufacturing overhead=????? Applied manufacturing overhead = 10,120 |
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