Whitlock Manufacturing uses a job costing accounting system for its production costs. The company uses a predetermined overhead rate based on direct materials costs to apply overhead to individual jobs. The company prepared an estimate of overhead costs at different volumes for the current year as follows: Whitlock expects to spend $409,000 in direct materials costs over the entire year. The following information is for May, when Jobs WM-52 and WM-53 were completed: a. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is 225% of direct materials cost. Use this rate in answering requirements [b] through [f], as needed.) b. Compute the total cost of Job WM- 52 when it is finished. c. How much of factory overhead cost was applied to Job WM-54 during May? d. What total amount of overhead was applied to jobs during May? e. Compute actual factory overhead incurred during May. f. At the end of the year, Whitlock Manufacturing had the following account balances: Assuming that the underapplied overhead is not material, show the new account balances in the following table. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual job during the year. Compute the total cost of Job WM-52 when it is finished. What total amount of overhead was applied to jobs during May? How much of factory overhead cost was applied to Job WM-54 during May? Compute actual factory overhead incurred during May. Assuming that the underapplied overhead is not material, show the new account balances in the following table. Whitlock Manufacturing uses a job costing accounting system for its production costs. The company uses a predetermined overhead rate based on direct materials costs to apply overhead to individual jobs. The company prepared an estimate of overhead costs at different volumes for the current year as follows: Whitlock expects to spend $409,000 in direct materials costs over the entire year. The following information is for May, when Jobs WM-52 and WM-53 were completed: a. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is 225% of direct materials cost. Use this rate in answering requirements [b] through [f], as needed.) b. Compute the total cost of Job WM- 52 when it is finished. c. How much of factory overhead cost was applied to Job WM-54 during May? d. What total amount of overhead was applied to jobs during May? e. Compute actual factory overhead incurred during May. f. At the end of the year, Whitlock Manufacturing had the following account balances: Assuming that the underapplied overhead is not material, show the new account balances in the following table. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual job during the year. Compute the total cost of Job WM-52 when it is finished. What total amount of overhead was applied to jobs during May? How much of factory overhead cost was applied to Job WM-54 during May? Compute actual factory overhead incurred during May. Assuming that the underapplied overhead is not material, show the new account balances in the following table
