Module 10 Conversion Cycle Homework Use complete sentences. Show and label all w

Question

Module 10 Conversion Cycle Homework Use complete sentences. Show and label all work to receive any credit for the horm 5. Chris P. Critters Manufacturing produces three models of grills: the small rare grill,the ll, the medium grill and the large well done grill. The large well done grill has the most features a 100% stainless steel. Chris applies product-sustaining overhead to and is made of on the each product based ering hour timated that 600 engine will be required in the next period and that product sustaining overhead costs will be the end of the period the following was discovered: $25,000. At Grill Small Rare Medium Actual Engineering Hours Incurred 220 260 180 Large Well Done The actual product sustaining overhead costs for the period were $23,600 Required: a. Determin e the amount of overhead applied to each of the products in the product line. b. Determine the amount of over or under applied overhead.

Explanation / Answer

Overhead rate = 25000/600 = 41.67 per hour

a) Amount of overhead applied = Actual hour*overhead rate

= 660*41.666

Amount of overhead applied = 27500

b) Over applied overhead = Applied overhead-actual overhead

= 27500-23600

Over applied overhead = 3900

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