Estimated manufacturing overhead for the year $ 30,000 Estimated direct labor hours for the year 2,000 Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overheadwas $37,000. What is the amount of the under- or overapplied manufacturing overhead?

Estimated manufacturing overhead for the year $ 30,000 Estimated direct labor hours for the year 2,000 Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overheadwas $37,000. What is the amount of the under- or overapplied manufacturing overhead?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

100%

Estimated manufacturing overhead for the year $ 30,000
Estimated direct labor hours for the year
2,000
Two jobs were worked on during the year: Job A-101 and Job A-102. The number
of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000,
respectively. The actual manufacturing overheadwas $37,000.
What is the amount of the under- or overapplied manufacturing overhead?

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