Question
In: Accounting
MMM (Mickey Mouse Manufacturing) applies manufacturing overhead at a rate of 150% of direct labor cost....
MMM (Mickey Mouse Manufacturing) applies manufacturing overhead at a rate of 150% of direct labor cost. During October MMM incurred $40,000 of direct materials cost, $80,000 of direct labor cost and $120,000 of manufacturing overhead costs. What is the amount of over or under applied manufacturing overhead for October?
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Expert Solution
Predetermined overhead rate = 150% of direct labor cost
Direct labor cost = $80,000
Manufacturing overhead applied = Direct labor cost x Predetermined overhead rate
= 80,000 x 150%
= $120,000
Actual manufacturing overhead = $120,000
Since manufacturing overhead applied is same as actual manufacturing overhead, hence there is no under applied or over applied manufacturing overhead.
ekkarill92 answered 2 years agoRelated Solutions
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Work
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Direct
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Direct
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?
Factory
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Multiple Choice
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