Barefoot Running Company's work-in-process inventory on June 1 has a balance of $23,100 representing Job No. 265. During June, $50,300 of direct materials were requisitioned for Job No. 265, and $35,400 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 125% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,700. No new jobs were started during June. Job No. 265 is completed on June 28. Is manufacturing overhead overallocated or under-allocated for the month of June and by how much? A. $2,550 under-allocated. B. $2,550 over-allocated. C. $12,825 over-allocated. D. $12,825 under-allocated.

Barefoot Running Company's work-in-process inventory on June 1 has a balance of $23,100 representing Job No. 265. During June, $50,300 of direct materials were requisitioned for Job No. 265, and $35,400 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 125% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,700. No new jobs were started during June. Job No. 265 is completed on June 28. Is manufacturing overhead overallocated or under-allocated for the month of June and by how much? A. $2,550 under-allocated. B. $2,550 over-allocated. C. $12,825 over-allocated. D. $12,825 under-allocated.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter5: Product And Service Costing: Job-order System

Section: Chapter Questions

Problem 14E: On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following...

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The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
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