Southern Rim Parts estimates its manufacturing overhead to be $318,000 and its direct labor costs to...

Southern Rim Parts estimates its manufacturing overhead to be $318,000 and its direct labor costs to be $1,060,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $65,000 for Job 301, $90,000 for Job 302, and $175,000 for Job 303. For the year, actual manufacturing overhead was $399,000 and total direct labor cost was $834,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates.

Required:

a. How much overhead was assigned to each of the three jobs, 301, 302, and 303?

b. What was the over- or underapplied manufacturing overhead for year 1?

Expert Solution

ekkarill92 answered 2 years ago

Southern Rim Parts estimates its manufacturing overhead to be $418,500 and its direct labor costs to...

Southern Rim Parts estimates its manufacturing overhead to be $418,500 and its direct labor costs to be $930,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $52,000 for Job 301, $77,000 for Job 302, and $110,000 for Job 303. For the year, actual manufacturing overhead was $464,000 and total direct labor cost was $847,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....

2. Southern Rim Parts estimates its manufacturing overhead to be $360,500 and its direct labor costs to...

2. Southern Rim Parts estimates its manufacturing overhead to be $360,500 and its direct labor costs to be $1,030,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $62,000 for Job 301, $87,000 for Job 302, and $160,000 for Job 303. For the year, actual manufacturing overhead was $414,000 and total direct labor cost was $837,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....

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