1000 points Fairfield company applies manufacturing overhead to products at a pr

Question

1000 points Fairfield company applies manufacturing overhead to products at a predetermined rate of s50 per direct labor hour. Its manufacturing costs for the most recent period are summarized here Total Cost S 60,000 Used on Jobs 101 and 102 Drect materials 30,000 Used on multiple jobs 750 hours $30 per hour Hourly labor wages $6,000 200 hours for Job 101 s 9,000 300 hours for Job 102 250 hours for Job 103 4.000 Factory supervision 8,000 Production engineer Factory janitorial work 2,500 9,000 Seling, general, and administrative salaries 7,500 Other manufacturing overhead costs (tactory rent, insurance, depreciation. etc) Other selling, general, and administrative costs (oftce rent insurance. depreciation, etc) 6.000 1. Post the preceding information to Fairfield Company's Manufacturing Overhead account Manufacturing overhead Applied OH Direct Materials Factory Janitorial Work Factory Supervision Hourly Labor Wages Indirect Materials other Factory overhead Production Engineer

Explanation / Answer

* Manufacturing overhead is applied at the predetermined rate of $50 of the direct labour hours

therefore the total overhea applied will be = 750*50=$37500

(B)

Total manufacturing overhead applied to work in process : $ 37,500

Total manufacturing overhead cost actually incurred           :    52,000

Under-applied manufacturing overhead                                  : $ 14,500

Particulars Amount Particulars Amount Indirect material 30000 By work in processa/c $37,500 Factory supervision 4000 Factory janitorial work 2500 Production engineering 8000 Other manufacturing OH costs 7500 Balance c/d $14,500 Total $52,000 Total $52,000

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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