Whippet Manufacturing uses a predetermined overhead rate of 150% of direct labor cost. During the month, Silverstone incurred $120,000 in total factory labor costs, of which $95,000 is direct labor and $25,000 is indirect labor. The actual manufacturing overhead incurred was $135,000. (a) Compute the amount of manufacturing overhead applied during the month. (b) Determine the amount of under- or over applied manufacturing overhead.

Whippet Manufacturing uses a predetermined overhead rate of 150% of direct labor cost. During the month, Silverstone incurred $120,000 in total factory labor costs, of which $95,000 is direct labor and $25,000 is indirect labor. The actual manufacturing overhead incurred was $135,000. (a) Compute the amount of manufacturing overhead applied during the month. (b) Determine the amount of under- or over applied manufacturing overhead.

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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