Project Adam Cane Abel Designer-hours 200 50 100 Direct material $4000 $1800 $36
ID: 2420628 • Letter: P
Question
Project
Adam
Cane
Abel
Designer-hours
200
50
100
Direct material
$4000
$1800
$3600
Direct labor
$2000
$500
$5000
Overhead cost $40*designer hrs
Total
If actual overhead cost was $10,000 for January. Overhead is applied on basis of designer hours.Predetermuned overhead cost is $40/hr. Adam and Abel projects were completed in January but Abel’s project will be completed at the end of the month.
Calculate overhead cost that would have been appied to Project Adam, Cane and Abel for January.
Calculate cost of goods manufactured for January
What is the accumulated cost of work in process at the end of January?
What is the unerapplied or overapplied overhead?
Project
Adam
Cane
Abel
Designer-hours
200
50
100
Direct material
$4000
$1800
$3600
Direct labor
$2000
$500
$5000
Overhead cost $40*designer hrs
Total
Explanation / Answer
Applied over head cost= predetermined rate*no of hours
=40*(200+50+100)= $14,000
Adam=(200/350)*14000=$8000
Cane=(50/350)*14,000=$2000
Albe=(100/350)*14000=$4000
Cost of goods manufactured= Direct marterial+direct labour+overhead
=(4000+1800+3600)+(2000+500+5000)+14000=$30,900
Accumulated cost of work at end of january=
Over applied=14000-10000=$4000
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