c. Calculate the manufacturing overhead rate based on direct labor cost.96d. Was manufacturing overhead for February under- or overapplied, and by what amount?Manufacturing overhead was- by sfor February.e. Was manufacturing overhead for the first two months of the year under- or overapplied, and by what amount?Manufacturing overhead wasby $for the first two months,f. What is the cost of production completed in February?g. What is the cost of goods sold in February?%24%24 Determine and Use Overhead RateThe following selected ledger accounts of Cameron Company are for February (the second month of its accounting year):Materials InventoryFeb. 1 balance113,400February credits406,800February debits374,400Manufacturing OverheadFebruary debits493,920Feb. 1 balance41,760February credits490,860Work in Process InventoryFeb. 1 balance80,640February credits1,242,000February debits:Direct material342,000Direct Labor545,400Man. overhead490,860Wages PayableFebruary debits696,600Feb. 1 balance162,000February creditsFinished Goods Inventory637,200Feb. 1 balance275,400February credits1,381,320February debits1,242,000a. Determine the amount of indirect material requisitioned for production during February.b. How much indirect labor cost was apparently incurred during February?c. Calculate the manufacturing overhead rate based on direct labor cost.%24

Answered: Determine and Use Överhead Rate The…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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c. Calculate the manufacturing overhead rate based on direct labor cost.
96
d. Was manufacturing overhead for February under- or overapplied, and by what amount?
Manufacturing overhead was
- by s
for February.
e. Was manufacturing overhead for the first two months of the year under- or overapplied, and by what amount?
Manufacturing overhead was
by $
for the first two months,
f. What is the cost of production completed in February?
g. What is the cost of goods sold in February?
%24
%24

Determine and Use Overhead Rate
The following selected ledger accounts of Cameron Company are for February (the second month of its accounting year):
Materials Inventory
Feb. 1 balance
113,400
February credits
406,800
February debits
374,400
Manufacturing Overhead
February debits
493,920
Feb. 1 balance
41,760
February credits
490,860
Work in Process Inventory
Feb. 1 balance
80,640
February credits
1,242,000
February debits:
Direct material
342,000
Direct Labor
545,400
Man. overhead
490,860
Wages Payable
February debits
696,600
Feb. 1 balance
162,000
February credits
Finished Goods Inventory
637,200
Feb. 1 balance
275,400
February credits
1,381,320
February debits
1,242,000
a. Determine the amount of indirect material requisitioned for production during February.
b. How much indirect labor cost was apparently incurred during February?
c. Calculate the manufacturing overhead rate based on direct labor cost.
%24

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Introduction

In the manufacturing of any goods or products two types of costs can be incurred one is direct costs and other one is indirect costs, direct costs is the expenditure which is incurred directly while manufacturing the product whereas indirect costs is the expenditure which does not affect directly but essential for the completion of product. Direct materials and direct labor are example of direct costs whereas indirect labor and material are example of indirect cost.

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