Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projects using predetermined overhead rates. In the Installation Division, overhead is applied on the basis of direct labour hours, and in the Disposal Division, overhead is applied on the basis of debris tonnage hauled to the landfill. At the beginning of the current year, management made the following budget estimates to determine overhead application rates Annual Extinutes Manufacturing overhed Deed i Job #652 for Bees Grocery measured 8,348 square feet. The job was started and completed in May. Information pertaining to this project is provided below u no 652.348 squee Cost of Diect lebor Installation Disposal $70,000 $20.000 $100.000 $36.000 25.000 10.000 300 0 use on job $30.000 $1,000 $7800 $100 d. Assume that actual overhead costs for the year were $98,000 in the Installation Division, and $41,000 in the Disposal Division. Assume also that the actual direct labour hours used by the Installation Division were 24,000, and actual debris tonnage removed by the Disposal Division totalled 312 tons for the year. On the basis of this information, determine the over-or underapplied overhead in each division for the year

Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projects using predetermined overhead rates. In the Installation Division, overhead is applied on the basis of direct labour hours, and in the Disposal Division, overhead is applied on the basis of debris tonnage hauled to the landfill. At the beginning of the current year, management made the following budget estimates to determine overhead application rates Annual Extinutes Manufacturing overhed Deed i Job #652 for Bees Grocery measured 8,348 square feet. The job was started and completed in May. Information pertaining to this project is provided below u no 652.348 squee Cost of Diect lebor Installation Disposal $70,000 $20.000 $100.000 $36.000 25.000 10.000 300 0 use on job $30.000 $1,000 $7800 $100 d. Assume that actual overhead costs for the year were $98,000 in the Installation Division, and $41,000 in the Disposal Division. Assume also that the actual direct labour hours used by the Installation Division were 24,000, and actual debris tonnage removed by the Disposal Division totalled 312 tons for the year. On the basis of this information, determine the over-or underapplied overhead in each division for the year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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