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Yarra Fabrication estimates that its manufacturing overhead will be $2,355,200 in year 1. It further estimates that direct material costs will amount to $1,472,000. During July, Yarra worked on four jobs with actual direct materials costs of $78,000 for Job 0701, $112,000 for Job 0702, $145,000 for Job 0703, and S71,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,490,000. Actual direct materials costs were $1,640,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1? Complete this question by entering your answers in the tabs below. Required A Required B

Yarra Fabrication estimates that its manufacturing overhead will be $2,355,200 in year 1. It further estimates that direct material costs will amount to $1,472,000. During July, Yarra worked on four jobs with actual direct materials costs of $78,000 for Job 0701, $112,000 for Job 0702, $145,000 for Job 0703, and S71,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,490,000. Actual direct materials costs were $1,640,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1? Complete this question by entering your answers in the tabs below. Required A Required B

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Yarra Fabrication estimates that its manufacturing overhead will be $2,355,200 in year 1. It further estimates that direct material costs will amount to $1,472,000. During July, Yarra worked on four jobs with actual direct materials costs of $78,000 for Job 0701, $112,000 for Job 0702, $145,000 for Job 0703, and $71,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,490,000. Actual direct materials costs were $1,640,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1? Complete this question by entering your answers in the tabs below. Required A Required B What was the over- or underapplied manufacturing overhead for year 1? Overapplied manufacturing overhead < Required A Required B >
Transcribed Image Text:Yarra Fabrication estimates that its manufacturing overhead will be $2,355,200 in year 1. It further estimates that direct material costs will amount to $1,472,000. During July, Yarra worked on four jobs with actual direct materials costs of $78,000 for Job 0701, $112,000 for Job 0702, $145,000 for Job 0703, and $71,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,490,000. Actual direct materials costs were $1,640,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1? Complete this question by entering your answers in the tabs below. Required A Required B What was the over- or underapplied manufacturing overhead for year 1? Overapplied manufacturing overhead < Required A Required B >
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