Build Company is a manufacturing company and uses job order costing system. At the beginning of 2022, there were no jobs in process, but the following costs were incurred during the year: Job A Job B Job C Direct materials 20,000 10,000 5,000 15,000 2,500 Direct labor 4,000 Build Company also estimated in 2022 an overhead in the amount of P300,000 and direct labor cost in the amount of P150,000. Actual overhead incurred for the year was P24,000. It was the company's policy to apply overhead into production based on direct labor costs. At the end of the year, only Jobs A and C were completed. What is the under / over applied overhead? a. 9,000 under b. 1,000 under c. 9,000 over d. 1,000 over
Build Company is a manufacturing company and uses job order costing system. At the beginning of 2022, there were no jobs in process, but the following costs were incurred during the year: Job A Job B Job C Direct materials 20,000 10,000 5,000 15,000 2,500 Direct labor 4,000 Build Company also estimated in 2022 an overhead in the amount of P300,000 and direct labor cost in the amount of P150,000. Actual overhead incurred for the year was P24,000. It was the company's policy to apply overhead into production based on direct labor costs. At the end of the year, only Jobs A and C were completed. What is the under / over applied overhead? a. 9,000 under b. 1,000 under c. 9,000 over d. 1,000 over
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...
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Question
![Build Company is a manufacturing company and uses job order costing
system. At the beginning of 2022, there were no jobs in process, but the
following costs were incurred during the year:
Job A
Job B
Job C
10,000
5,000
Direct materials
20,000
15,000
Direct labor
4,000
2,500
Build Company also estimated in 2022 an overhead in the amount of P300,000 and direct labor cost
in the amount of P150,000. Actual overhead incurred for the year was P24,000. It was the company's
policy to apply overhead into production based on direct labor costs. At the end of the year, only Jobs
A and C were completed.
What is the under / over applied overhead?
a. 9,000 under
b. 1,000 under
c. 9,000 over
d. 1,000 over
a
d](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4d9933a-df6e-4bea-b345-f89d392ccd8d%2Fa312f52b-1d31-4df9-93dd-ed4b7076b37a%2F87xqldi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Build Company is a manufacturing company and uses job order costing
system. At the beginning of 2022, there were no jobs in process, but the
following costs were incurred during the year:
Job A
Job B
Job C
10,000
5,000
Direct materials
20,000
15,000
Direct labor
4,000
2,500
Build Company also estimated in 2022 an overhead in the amount of P300,000 and direct labor cost
in the amount of P150,000. Actual overhead incurred for the year was P24,000. It was the company's
policy to apply overhead into production based on direct labor costs. At the end of the year, only Jobs
A and C were completed.
What is the under / over applied overhead?
a. 9,000 under
b. 1,000 under
c. 9,000 over
d. 1,000 over
a
d
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