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 $183,080. Estimated direct labor cost 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 Required: 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead. Total Cost $ 49,154 2,470 3,450 3,240 4,870 5,620 1,140 1,850 4,150 5,390
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 $183,080. Estimated direct labor cost 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 Required: 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead. Total Cost $ 49,154 2,470 3,450 3,240 4,870 5,620 1,140 1,850 4,150 5,390
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: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 $183,080. Estimated direct labor cost
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
Required:
3. Calculate actual manufacturing overhead costs.
4. Compute over- or underapplied overhead.
Total Cost
$ 49,154
2,470
3,450
3,240
4,870
5,620
1,140
1,850
4,150
5,390
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