Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing ove 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead.
Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing ove 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over- or Underapplied
Overhead Costs [LO 2-3, 2-4,2-5, 2-6]
S
Book
Hint
Print
erences
ment.pdf
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the
beginning of the most recent year, the company estimated its manufacturing overhead cost at $189,120. Estimated direct labor cost
was $459,010 for 19,700 hours.
Actual costs for the most recent month are summarized here:
Item Description
Direct labor (1,500 hours)
Indirect costs
^
Indirect labor
Indirect materials
Factory rent
Factory supervision
Factory depreciation
Factory janitorial work
Factory insurance.
General and administrative salaries
Selling expenses
3. Calculate actual manufacturing overhead costs.
4. Compute over- or underapplied overhead.
Total Cost
$ 45,902
2,440
3,400
3,350
4,850
5,700
1,280
Required:
1. Calculate the predetermined overhead rate.
2. Calculate the amount of applied manufacturing overhead.
1,810
4,200
5,410
Complete this question by entering your answers in the tabs below.
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Transcribed Image Text:2
E2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over- or Underapplied
Overhead Costs [LO 2-3, 2-4,2-5, 2-6]
S
Book
Hint
Print
erences
ment.pdf
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the
beginning of the most recent year, the company estimated its manufacturing overhead cost at $189,120. Estimated direct labor cost
was $459,010 for 19,700 hours.
Actual costs for the most recent month are summarized here:
Item Description
Direct labor (1,500 hours)
Indirect costs
^
Indirect labor
Indirect materials
Factory rent
Factory supervision
Factory depreciation
Factory janitorial work
Factory insurance.
General and administrative salaries
Selling expenses
3. Calculate actual manufacturing overhead costs.
4. Compute over- or underapplied overhead.
Total Cost
$ 45,902
2,440
3,400
3,350
4,850
5,700
1,280
Required:
1. Calculate the predetermined overhead rate.
2. Calculate the amount of applied manufacturing overhead.
1,810
4,200
5,410
Complete this question by entering your answers in the tabs below.
< Prev
2 of 3 =
Next >
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