Chat with AI
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 30
Predetermined Overhead Rates
Bird Corporation estimates its manufacturing overhead to be $110,000 and its direct labor costs to be $200,000 for year 1. The actual direct labor costs were $50,000 for Job 301, $75,000 for Job 302, and $100,000 for Job 303 during year 1; the actual manufacturing overhead was $130,000. 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 job during year 1
b. What was the over- or underapplied manufacturing overhead for year 1
Bird Corporation estimates its manufacturing overhead to be $110,000 and its direct labor costs to be $200,000 for year 1. The actual direct labor costs were $50,000 for Job 301, $75,000 for Job 302, and $100,000 for Job 303 during year 1; the actual manufacturing overhead was $130,000. 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 job during year 1
b. What was the over- or underapplied manufacturing overhead for year 1
Explanation
Verified
Verified
Job shops use predetermined rates to ass...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
