Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At th beginning of the most recent year, the company estimated its manufacturing overhead cost at $183,080. Estimated direct labor cos was $491,530 for 19,900 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 Tactory depreciation Factory janitorial work. Factory insurance General and administrative salaries Selling expenses Total Cost $ 49,154 2,470 3,450 3,240 4,870 5,620 1,140 1,050 4,150 5,390 Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead.

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At th beginning of the most recent year, the company estimated its manufacturing overhead cost at $183,080. Estimated direct labor cos was $491,530 for 19,900 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 Tactory depreciation Factory janitorial work. Factory insurance General and administrative salaries Selling expenses Total Cost $ 49,154 2,470 3,450 3,240 4,870 5,620 1,140 1,050 4,150 5,390 Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead.

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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