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-   -   Compute the amount of underapplied or overapplied overhead cost for the year (https://www.askmehelpdesk.com/showthread.php?t=595161)

  • Aug 30, 2011, 07:06 PM
    teresab270
    Compute the amount of underapplied or overapplied overhead cost for the year
    Manufacturing overhead costs incurred:





    Indirect materials

    $1,100



    Indirect labor

    9,900



    Property taxes, factory

    2,800



    Utilities, factory

    4,900



    Depreciation, factory

    23,900



    Insurance, factory


    5,900



    Total actual manufacturing overhead costs incurred


    $48,500



    Other costs incurred:





    Purchases of raw materials(both direct and indirect)

    $31,600



    Direct labor cost

    $40,600



    Inventories:





    Raw materials, beginning

    $9,000



    Raw materials, ending

    $6,400



    Work in process, beginning

    $5,500



    Work in process, ending

    $6,900




    --------------------------------------------------------------------------------






    The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine-hour. A total of 12,300 machine-hours was recorded for the year.

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