Falcon Ridge Fabricators uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead. The company estimated its total manufacturing overhead for the year to be $450,000, and estimated 90,000 direct labor hours. At year-end: Actual manufacturing overhead incurred: $472,000 • • Actual direct labor hours worked: 95,000 hours Calculate the over applied or under applied overhead for the year.

Falcon Ridge Fabricators uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead. The company estimated its total manufacturing overhead for the year to be $450,000, and estimated 90,000 direct labor hours. At year-end: Actual manufacturing overhead incurred: $472,000 • • Actual direct labor hours worked: 95,000 hours Calculate the over applied or under applied overhead for the year.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...

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A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
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Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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