Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing overhead to be $423,280 and its direct labor costs to be $814,000. 2M worked on three jobs for the year. Job 2M-1, which was sold during Year 2, had actual direct labor costs of $574,750. Job 2M-2, which was completed but not sold at the end of the year, had actual direct labor costs of $386,650. Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of $83,600. Actual manufacturing overhead for Year 2 was $577,200. Required: a. How much overhead was applied to each job Year 2? b. What was the over- or underapplied manufacturing overhead for Year 2? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead was applied to each job in Year 2? Job 2M-1 Job 2M-2 Job 2M-3 < Required A Required B > 11

Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing overhead to be $423,280 and its direct labor costs to be $814,000. 2M worked on three jobs for the year. Job 2M-1, which was sold during Year 2, had actual direct labor costs of $574,750. Job 2M-2, which was completed but not sold at the end of the year, had actual direct labor costs of $386,650. Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of $83,600. Actual manufacturing overhead for Year 2 was $577,200. Required: a. How much overhead was applied to each job Year 2? b. What was the over- or underapplied manufacturing overhead for Year 2? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead was applied to each job in Year 2? Job 2M-1 Job 2M-2 Job 2M-3 < Required A Required B > 11

Name: Marian Manufacturing (2M) applies manufacturing overhead to jobs base
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Description: Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates itsmanufacturing overhead to be $423,280 and its direct labor costs to be $814,000. 2M worked on three jobs for the year. Job 2M-1

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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I need the answer to 1b.
Your Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated its predetermined overhead rate to be $4 per direct labor hour since it estimated total manufacturing overhead cost at $400,000 and direct labor-hours at 100,000 hours. The actual overhead cost incurred during the year was $370,000 and the actual direct labor-hours incurred on jobs during the year was 90,000 hours. What is the difference between the applied manufacturing overhead and the actual manufacturing overhead? O $30,000 underapplied O $10,000 underapplied O $10,000 overapplied O $30,000 overapplied