Denitar
Oct 12, 2008, 07:04 PM
Hewlett Corp. applies manufacturing overhead to jobs on the basis of direct labor hours used.
Overhead costs are expected to total $575,000 for the year and direct labor hours are estimated at 50,000 hours.
In January, $90,000 of overhead costs are incurred and $15,000 direct labor hours are used. for the remainder of the year, $475,000 of additional overhead costs are incurred and 40,000 additional direct labor hours are worked.
a. computer the predetermined manufacturing overhead rate for the year.
b. What is the over - or underapplied overhead at January 31? How should this amount be reported in the financial statements prepare at january31?
c. What is the amount of over - or underapplied overhead at December 31?
Overhead costs are expected to total $575,000 for the year and direct labor hours are estimated at 50,000 hours.
In January, $90,000 of overhead costs are incurred and $15,000 direct labor hours are used. for the remainder of the year, $475,000 of additional overhead costs are incurred and 40,000 additional direct labor hours are worked.
a. computer the predetermined manufacturing overhead rate for the year.
b. What is the over - or underapplied overhead at January 31? How should this amount be reported in the financial statements prepare at january31?
c. What is the amount of over - or underapplied overhead at December 31?