Overapplied and underapplied
Exercise 3-35 Overapplied or Underapplied Overhead (LO 4, 5)
The following information pertains to Paramus Metal Works for the year just ended.
Budgeted direct-labor cost: 77,000 hours at $17 per hour
Actual direct-labor cost: 79,000 hours at $18 per hour
Budgeted manufacturing overhead: $993,300
Budgeted selling and administrative expenses: $417,000
Actual manufacturing overhead:
Depreciation
$
225,000
Property taxes
19,000
Indirect labor
79,000
Supervisory salaries
210,000
Utilities
58,000
Insurance
32,000
Rental of space
295,000
Indirect material (see data below)
79,000
Indirect material:
Beginning inventory, January 1
46,000
Purchases during the year
95,000
Ending inventory, December 31
62,000
Calculate the overapplied or underapplied overhead for the year. (Omit the "$" sign in your response.)
