iPad 6:32 PM 40% . Question 5 (of 6) Save& Exit Subm 3.00 points E2-16 Calculati

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iPad 6:32 PM 40% . Question 5 (of 6) Save& Exit Subm 3.00 points E2-16 Calculating Actual and Applied Manufacturing Overhead Costs and Over- or Underapplied Overhead Costs [LO 2-3, 2-4, 2-5, 2-6] Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $191,070. Estimated direct labor cost was 5468.990 for 19.300 hours. Actual costs for the most recent month are summarized here: Direct labor (1,930 hours $46,900 Indrect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work 2.480 3,320 4,870 1.130 1,740 4,240 5,390 General and administrative salaries Selling expenses Required: 1. Calculabe the predetermined overhead rate. (Round your answer to 2 decimal places.) Per DL Hour 2. Calculate the amount of applied manufacturing overhead 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead (Input the amount as positive value.)

Explanation / Answer

1 Predetermined overhead rate = 191070/19300= $9.9 per DL hour 2 Applied manufacturing overhead = 1930*9.9= $19107 3 Indirect Labor 2480 Indirect Material 3320 Factory Rent 3300 Factory Supervision 4870 Factory Depreciation 5670 Factory Janitorial Work 1130 Factory Insurance 1740 Actual Manufacturing Overhead Costs 22510 4 Overhead underapplied = 22510-19107 = $3403

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