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Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $176,700. Estimated direct labor cost was $450,300 for 19,000 hours. Actual costs for the most recent month are summarized here: Item Description Direct labor (1,900 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Total Cost $45,031 2,460 3,350 3,320 4,880 Factory depreciation Factory janitorial work 5,670 1,290 Factory insurance 1,810 General and administrative salaries 4,160 Selling expenses 5,450 Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead. 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead. Complete this question by entering your answers in the tabs below.
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