Koebel Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Koebel Corp estimated total manufacturing overhead cost at $830,400 and total direct labor hours of 51,900. Koebel Corp. started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the year actual manufacturing overhead incurred was $781,800 and 47,400 direct labor hours were used. (a) Calculate the predetermined overhead rate. Predetermined Overhead Rate (b) Calculate how much manufacturing overhead will be applied to production. Manufacturing Overhead Applied per hour (c) Is overhead over- or underapplied? By how much? (Input the amount as positive value.) Overhead
Koebel Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Koebel Corp estimated total manufacturing overhead cost at $830,400 and total direct labor hours of 51,900. Koebel Corp. started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the year actual manufacturing overhead incurred was $781,800 and 47,400 direct labor hours were used. (a) Calculate the predetermined overhead rate. Predetermined Overhead Rate (b) Calculate how much manufacturing overhead will be applied to production. Manufacturing Overhead Applied per hour (c) Is overhead over- or underapplied? By how much? (Input the amount as positive value.) Overhead
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Koebel Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For
the upcoming year, Koebel Corp estimated total manufacturing overhead cost at $830,400 and total direct labor hours of 51,900.
Koebel Corp. started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the
year actual manufacturing overhead incurred was $781,800 and 47,400 direct labor hours were used.
(a) Calculate the predetermined overhead rate.
Predetermined Overhead Rate
(b) Calculate how much manufacturing overhead will be applied to production.
Manufacturing Overhead Applied
per hour
(c) is overhead over- or underapplied? By how much? (Input the amount as positive value.)
Overhead
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