Cullumber Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies nanufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by precasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1809,000 904.500 s at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $ 113.800, and 1819c. otal direct labour charges of $ 390.200. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issu or 1768B amounted to $ 228.000. and for 1819C they amounted to $ 420.900. otal charges to the Manufacturing Overhead Control account for the year were $ 899.000, and direct labour charges made to allj mounted to $ 1.577.200.representing 248,100 direct labour hours. There were no beginning inventories. In addition to the ending work in process just described, the ending finished goods inventory ccount showed a balance of $ 561.960. ales for the year amounted to $6.203.300; cost of goods sold totalled $ 3.652.740; and sales, general, and administrative expense were $ 1.849,400. he above amounts for inventories and the cost of goods sold have not been adjusted for any over-or under-application of
Cullumber Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies nanufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by precasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1809,000 904.500 s at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $ 113.800, and 1819c. otal direct labour charges of $ 390.200. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issu or 1768B amounted to $ 228.000. and for 1819C they amounted to $ 420.900. otal charges to the Manufacturing Overhead Control account for the year were $ 899.000, and direct labour charges made to allj mounted to $ 1.577.200.representing 248,100 direct labour hours. There were no beginning inventories. In addition to the ending work in process just described, the ending finished goods inventory ccount showed a balance of $ 561.960. ales for the year amounted to $6.203.300; cost of goods sold totalled $ 3.652.740; and sales, general, and administrative expense were $ 1.849,400. he above amounts for inventories and the cost of goods sold have not been adjusted for any over-or under-application of
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies
manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by
forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows:
Direct labour
$1809.000
Manufacturing overhead
904,500
As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $ 113,800, and 1819C. with
total direct labour charges of $ 390,200. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued
for 1768B amounted to $ 228.000. and for 1819C they amounted to $ 420.900,
Total charges to the Manufacturing Overhead Control account for the year were $ 899,000, and direct labour charges made to all jobs
amounted to $ 1,577.200, representing 248,100 direct labour hours.
There were no beginning inventories. In addition to the ending work in process just described, the ending finished goods inventory
account showed a balance of $ 561.960.
Sales for the year amounted to $ 6.203.300; cost of goods sold totalled $ 3.652.740; and sales, general, and administrative expenses
were $ 1.849,400.
The above amounts for inventories and the cost of goods sold have not been adjusted for any over-or under-application of
manufacturing overhead to production. It is the company's practice to allocate any over-or under-applied overhead to inventories and
the cost of goods sold.
Calculate the under- or over-applied manufacturing overhead for 2022.
Manufacturing overhead $
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