Jeffrey estimates that the normal usage is 120,000 hours in a typical year. Manufacturing overhead Direct-labor hours 100,000 120,000 140,000 Variable P 325,000 390,000 455,000 Fixed P 216,000 216,000 216,000 During November the following jobs were completed: Job 77 Side chairs Job 78 End tables Required: Assist Jeffrey by making the following calculations. ar. emo 4. What was the total amount of manufacturing overhead applied during November? 5 Compute the actual manufacturing overhead incurred during November. for 6.Calculate the overapplied or underapplied overhead for November.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Pls help me answer the REQUIRED #4, 5, and 6.

Overhead Application Problem.
Tina Jeffrey, the controller for Lafayette Furniture Company, is in the process of
analyzing the overhead cost for the month of November. She has gathered the
following data for the month:
LABOR
Direct Labor hours:
Job 77
3,500
Job 78
Job 79
Labor costs:
3,000
2,000
Direct- labor wages
Indirect-labor wages (4,000 hrs.)
Supervisory salaries
P 51,000
15,000
6,000
Material
Inventories, November 1:
Raw materials and Supplies P 10,500
Work in process (job 77)
Finished goods
Purchase of Raw Materials and Supplies :
Raw material
54,000
112,000
overhead application. In December of the preceding year, Jeffrey had prepared the
following budget of direct-labor and manufacturing-overhead costs for the current year.
The plant is capable of operating at 150,000 direct-labor hours per year. However,
Jeffrey estimates that the normal usage is 120,000 hours in a typical year.
P 135,000
Supplies (Indirect mat.)
Direct materials and supplies requisitioned for production:
Job 77
15,000
Manufacturing overhead
Fixed
P 216,000
216,000
216,000
P 45,000
Job 78
37,500
25,500
12.000
P 120,000
Direct-labor hours
Variable
P 325,000
390,000
Job 79
100,000
120.000
Supplies( indirect mat.)
Total
140,000
455,000
Other
During November the following jobs were completed:
Building occupancy costs (heat, light, depreciation, etc):
Factory facilities
Sales offices
Administrative office
P 6,400
Job 77
Job 78
Side chairs
End tables
1,600
1.000
P 9,000
Total
Production equipment costs:
Power
Required:
Assist Jeffrey by making the following calculations.
Repairs and maintenance
Depreciation
Other
Total
P 4,100
1,500
1,500
1.000
P 8,100
4. What was the total amount of manufacturing overhead applied during November?
5 Compute the actual manufacturing overhead incurred during November.
The firm's job -order costing system uses direct labor hours as the cost driver for 6.Calculate the overapplied or underapplied overhead for November.
Transcribed Image Text:Overhead Application Problem. Tina Jeffrey, the controller for Lafayette Furniture Company, is in the process of analyzing the overhead cost for the month of November. She has gathered the following data for the month: LABOR Direct Labor hours: Job 77 3,500 Job 78 Job 79 Labor costs: 3,000 2,000 Direct- labor wages Indirect-labor wages (4,000 hrs.) Supervisory salaries P 51,000 15,000 6,000 Material Inventories, November 1: Raw materials and Supplies P 10,500 Work in process (job 77) Finished goods Purchase of Raw Materials and Supplies : Raw material 54,000 112,000 overhead application. In December of the preceding year, Jeffrey had prepared the following budget of direct-labor and manufacturing-overhead costs for the current year. The plant is capable of operating at 150,000 direct-labor hours per year. However, Jeffrey estimates that the normal usage is 120,000 hours in a typical year. P 135,000 Supplies (Indirect mat.) Direct materials and supplies requisitioned for production: Job 77 15,000 Manufacturing overhead Fixed P 216,000 216,000 216,000 P 45,000 Job 78 37,500 25,500 12.000 P 120,000 Direct-labor hours Variable P 325,000 390,000 Job 79 100,000 120.000 Supplies( indirect mat.) Total 140,000 455,000 Other During November the following jobs were completed: Building occupancy costs (heat, light, depreciation, etc): Factory facilities Sales offices Administrative office P 6,400 Job 77 Job 78 Side chairs End tables 1,600 1.000 P 9,000 Total Production equipment costs: Power Required: Assist Jeffrey by making the following calculations. Repairs and maintenance Depreciation Other Total P 4,100 1,500 1,500 1.000 P 8,100 4. What was the total amount of manufacturing overhead applied during November? 5 Compute the actual manufacturing overhead incurred during November. The firm's job -order costing system uses direct labor hours as the cost driver for 6.Calculate the overapplied or underapplied overhead for November.
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