Wert Corporation uses a predetermined overhead rate based on direct labour cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing was $1,200,000 and its estimated level of activity was 50,000 direct labour-hours. The company's direct labour wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labour cost of $650,000. For the year, manufacturing overhead was A) over-applied by $60,000 B) under-applied by $60,000 C) over-applied by $40,000 D) under-applied by $44,000

Wert Corporation uses a predetermined overhead rate based on direct labour cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing was $1,200,000 and its estimated level of activity was 50,000 direct labour-hours. The company's direct labour wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labour cost of $650,000. For the year, manufacturing overhead was A) over-applied by $60,000 B) under-applied by $60,000 C) over-applied by $40,000 D) under-applied by $44,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
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