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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Part B please
![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 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a92e595-69a8-4ba3-9e62-d1ba59e7a231%2Fdc46eee0-a68b-44b7-80ec-8cdd5c3babd8%2Fl9uk9rx_processed.png&w=3840&q=75)
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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