Question

The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.

The following information was taken from the annual budget:

Direct labor hours……………………………………………84,000

Machine hours……………………………………………...120,000

Manufacturing costs:

Direct labor………………………………………………..$525,000

Direct materials……………………………………………..180,000

Indirect labor…………………………………………………75,000

Electric power………………………………………………..48,000

Payroll taxes…………………………………………………12,600

Machine maintenance and repair……………………………...9,200

Factory supplies……………………………………………...16,000

Factory heat and light………………………………………..14,000

Depreciation, taxes, and insurance:

Factory buildings…………………………………………...135,000

Machinery…………………………………………………..320,200

…………………………………………………………..$1,335,000

Actual results for the year follow:

Direct labor hours……………………………………………85,000

Machine hours……………………………………………...110,000

Manufacturing costs:

Direct labor………………………………………………$ 540,000

Direct material……………………………………………...200,000

Factory overhead…………………………………………...625,000

…………………………………………………………..$1,365,000

Determine the following factory overhead application rates under each of the following methods

Direct labor cost

Direct labor hours

Machine hours

Determine the under -or over- applied factory overhead under each of the following methods

Direct labor cost

Direct labor hours

Machine hours

The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.

The following information was taken from the annual budget:

Direct labor hours……………………………………………84,000

Machine hours……………………………………………...120,000

Manufacturing costs:

Direct labor………………………………………………..$525,000

Direct materials……………………………………………..180,000

Indirect labor…………………………………………………75,000

Electric power………………………………………………..48,000

Payroll taxes…………………………………………………12,600

Machine maintenance and repair……………………………...9,200

Factory supplies……………………………………………...16,000

Factory heat and light………………………………………..14,000

Depreciation, taxes, and insurance:

Factory buildings…………………………………………...135,000

Machinery…………………………………………………..320,200

…………………………………………………………..$1,335,000

Actual results for the year follow:

Direct labor hours……………………………………………85,000

Machine hours……………………………………………...110,000

Manufacturing costs:

Direct labor………………………………………………$ 540,000

Direct material……………………………………………...200,000

Factory overhead…………………………………………...625,000

…………………………………………………………..$1,365,000

Determine the following factory overhead application rates under each of the following methods

Direct labor cost

Direct labor hours

Machine hours

Determine the under -or over- applied factory overhead under each of the following methods

Direct labor cost

Direct labor hours

Machine hours

The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.

The following information was taken from the annual budget:

Direct labor hours……………………………………………84,000

Machine hours……………………………………………...120,000

Manufacturing costs:

Direct labor………………………………………………..$525,000

Direct materials……………………………………………..180,000

Indirect labor…………………………………………………75,000

Electric power………………………………………………..48,000

Payroll taxes…………………………………………………12,600

Machine maintenance and repair……………………………...9,200

Factory supplies……………………………………………...16,000

Factory heat and light………………………………………..14,000

Depreciation, taxes, and insurance:

Factory buildings…………………………………………...135,000

Machinery…………………………………………………..320,200

…………………………………………………………..$1,335,000

Actual results for the year follow:

Direct labor hours……………………………………………85,000

Machine hours……………………………………………...110,000

Manufacturing costs:

Direct labor………………………………………………$ 540,000

Direct material……………………………………………...200,000

Factory overhead…………………………………………...625,000

…………………………………………………………..$1,365,000

Determine the following factory overhead application rates under each of the following methods

Direct labor cost

Direct labor hours

Machine hours

Determine the under -or over- applied factory overhead under each of the following methods

Direct labor cost

Direct labor hours

Machine hours

Answer 1