Verizox Company uses a job order cost system with manufacturing overhead applied

Question

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181.240 Estimated direct labor cost was $490,530 for 19,700 hours Actual costs for the most recent month are summarized here Total Cost 49.054 hem Description Direct labor (1,970 hours) Indirect oosts Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries Seling expenses 2.500 3.360 3.350 4,810 5,710 1,300 1,820 4270 ,400 Required 1. Calculate the predetermined overhead rate (Round your answer to 2 decimal places Per DL Hour 2. Caloulate the amount of applied manufacturing overhead

Explanation / Answer

1) predetermined overhead rate estimated manufacturing overhead cost/estimated direct labor hours 181,240/19700 9.2 predetermined overhead rate 9.2 per DL Hr 2) Applied manufacturing overhead 18124 actual labor hrs * predetermined overhead rate 1,970*9.2 18124 3) Actual Manufacturing overhead cost 22,850 Indirect labor 2,500 indirect materials 3,360 Factory rent 3,350 Factory supervision 4,810 Factory depreciation 5,710 Factory janitorial work 1,300 Factory insurance 1,820 Actual manufacturing 22,850 4) overhead under applied 4,726 ( actual MOH cost - applied MOH

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.