Verizox Company uses a job order cost system with manufacturing overhead applied to products based on...

Actual costs for the most recent month are summarized here:

Item Description	Total Cost
Direct labor (1,840 hours)	$	42,505
Indirect costs
Indirect labor		2,450
Indirect materials		3,500
Factory rent		3,270
Factory supervision		4,890
Factory depreciation		5,760
Factory janitorial work		1,290
Factory insurance		1,780
General and administrative salaries		4,140
Selling expenses		5,420

Required:
1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)

2. Calculate the amount of applied manufacturing overhead.

3. Calculate actual manufacturing overhead costs.

4. Compute over- or underapplied overhead. (Input the amount as positive value.)

Solutions

Expert Solution

Requirement 1

Estimated Manufacturing overheads	$ 1,84,000.00
Estimated direct labor Hours	18400
Predetermined overhead rate	$ 10.00 per Labor hour

Requirement 2

Predetermined overhead rate	$ 10.00
Actual Hours	1840
Manufacturing overheads applied	$ 18,400.00

Requirement 3

Indirect labor	$ 2,450.00
Indirect materials	$ 3,500.00
Factory rent	$ 3,270.00
Factory supervision	$ 4,890.00
Factory depreciation	$ 5,760.00
Factory janitorial work	$ 1,290.00
Factory insurance	$ 1,780.00
Total Actual Manufacturing Overheads	$ 22,940.00

Requirement 4

Total Manufacturing Overheads	$ 22,940.00
Manufacturing overheads applied	$ 18,400.00
Underapplied Manufacturing overheads	$ 4,540.00

ekkarill92 answered 10 months ago

Next > < Previous

Related Solutions

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on...

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $172,040. Estimated direct labor cost was $456,280 for 18,700 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,870 hours) $ 45,629 Indirect costs Indirect labor 2,520 Indirect materials 3,380 Factory rent 3,340 Factory supervision 4,730 Factory...

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on...

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $178,560. Estimated direct labor cost was $431,520 for 18,600 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,860 hours) $ 43,153 Indirect costs Indirect labor 2,500 Indirect materials 3,360 Factory rent 3,260 Factory supervision 4,870 Factory...

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on...

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $172,980. Estimated direct labor cost was $435,240 for 18,600 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,860 hours) $ 43,525 Indirect costs Indirect labor 2,430 Indirect materials 3,380 Factory rent 3,240 Factory supervision 4,810 Factory...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $51,700 and its total manufacturing overhead cost to be $98,230. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 2. Fill in the missing values in...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $54,800 and its total manufacturing overhead cost to be $98,640. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate. 2....

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $50,300 and its total manufacturing overhead cost to be $90,540. Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow: Required: 1. Calculate the predetermined overhead rate. 2. Fill in...

Sampson Company uses a job order cost system with overhead applied to products based on direct...

Sampson Company uses a job order cost system with overhead applied to products based on direct labor hours. Based on previous history, the company estimated its total overhead for the coming year (2016) to be $720000 and its total direct labor hours to be 24000. On January 1, 2010 the general ledger of Sampson Company revealed that it had one job in process (Job 102) for which it had incurred a total cost of $15,000. Job 101 had been finished...

Tyler Tooling Company uses a job order cost system with overhead applied to products on the...

Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $225,720 and total machine hours at 62,700. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $...

ABC Company uses a job order cost system with overhead applied to products on the basis...

ABC Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $259,530 and total machine hours at 63,300. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $ 11,800...

ABC Company uses a job order cost system with overhead applied to products on the basis...

ABC Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $222,840 and total machine hours at 61,900. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $ 10,200...

Subjects