*Don\'t know how to determine manufacturing overhead Southern Rim Parts estimate
ID: 2551533 • Letter: #
Question
*Don't know how to determine manufacturing overhead
Southern Rim Parts estimates its manufacturing overhead to be $282,000 and its direct labor costs to be $940,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $53,000 for Job 301, $78,000 for Job 302, and $115,000 for Job 303. For the year, actual manufacturing overhead was $459,000 and total direct labor cost was $846,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates Required a. How much overhea d was assigned to each of the three jo bs, 301, 302, and 30? Answer is complete and correct. Job 301 Job 302 Job 303 15,900 23,400 34,500 b. What was the over- or underapplied manufacturing overhead for year 1? Answer is not complete UnderappliedringExplanation / Answer
Over or Under applied manufacturing overheads for Year 1:
Actual manufaturing overheads = $459,000
Less: budgetr=ed manufacturig overheads = $282,000
under applied overheads (Actual overheads > budgeted) (459,000-282,000) = $177,000
ans) under applied manufacturing overhedd = $177,000
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