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What is the manufacturing overhead applied Raw materials work in process Finished goods 40.oee S 18,e S 35,e The company applies overhead cost to jobs
What is the manufacturing overhead applied
Raw materials work in process Finished goods 40.oee S 18,e S 35,e The company applies overhead cost to jobs using direct labor-hours. For this year. the company's predetermined overhead rate Of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturinq Overhead for an estimated activity level Of 40,000 direct laborhours. The following transactions were recorded this year Raw materials were purchased on account. $510,000 b Raw materials used in production. "80.000 All of of the materials were used as direct materials. . The following costs were accrued for employee services: direct labor. $600,000: indirect labor, $150,000; selling and administrative salaries. $240,000 d. Incurred various selling and administrative expenses leg.. advertising. sales travel costs. and finished goods warehousing). $367,000. Incurred various manufacturing overhead costs (e.g.. depreciation. insurance. and utilities). $500,000. e, f. Manufacturing overhead cost was applied to production. The company actually worked 41.000 direct labor-hours on jobs durinq the year, Jobs costing to manufacture according to their job cost sheets were Completed during the g. year. Jobs were sold on account to customers during the year for a total of $2.800000. The jobs cost h. $1.690.000 to manufacture accord.ng to their job cost sheets. 9. 's manufacturing overhead underapplied Or overapplied for this year? By how much?
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