Chapter 1, Problem 18DQ

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General accounting question

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Mango Pest Control Ltd. has sales of $720,000, costs of $498,000, depreciation expense of $61,000, interest expense of $26,000, and a tax rate of 35 percent. What is the net income of the firm?

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For Ikea Manufacturing, the predetermined overhead rate is 125% of direct labor cost. During the month, Ikea incurred $96,000 in total factory labor costs, of which $78,400 is direct labor and $17,600 is indirect labor. The actual manufacturing overhead incurred was $100,500. Compute the amount of manufacturing overhead applied during the month. Determine the amount of under- or overapplied manufacturing overhead.help

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