i need help with these Gulz Chpt 2 &3 6 Sd Help Save& Exit Submit 7 c corporatio

Question

i need help with these

Gulz Chpt 2 &3 6 Sd Help Save& Exit Submit 7 c corporation uses direct labor hours in its o edetermined overhead rate. At the beginning of the year, the estimated drect labor ours vere 21.9 hours and the total estimated manutact n over eed was $540 70 Al the end of the year, aclual drect laber our for the year were 21,950 hours and he aclual manufacturing ovehead for the yeal was 5510,70. Overhead at the erid of the yeer was (Round your intermediate calculations to 2 decimal places) $738 undereppliad 5738 upplied 5788 upplied

Explanation / Answer

Solution 6:

Predetermined overhead rate = Estimated overhead / estimated machine hours

= $310,000/20000 = $15.50 per machine hour

actual activity level = 18300 machine hours

Manufacturing overhead applied = Actual machine hours * Predetermined overhead rate

= 18300 * $15.50

= $283,650

Hence 2nd option is correct.

Solution 7:

Predetermined overhead rate = Estimated overhead / Estimated direct labor hours

= $540,708/21980

= $24.60 per labor hour

Overhead applied =Actual direct labor hour * Overhed rate = 21950 * $24.60

= $539,970

Actual overhead = $540,708

Underapplied overhead = $540,708 - $539,970 = $738

Hence first option is correct.

Solution 8:

Predetermined overhead rate = Estimated overhead / Estimated direct labor hours

= ($285,000 + 50000*$3.80) / 50000 = $9.50 per labor hour

Overhead applied to job P123 = 20 * $9.50 = $190

Total job cost of P123 = $710 + $500 + $190 = $1,400

Hence first option is correct.

Solution 9:

Predetermined overhead rate = Estimated overhead / Estimated direct labor hours

= ($285,000 + 50000*$3.80) / 50000 = $9.50 per labor hou

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