2.00 points Tyler Tooling Company uses a job order cost system with overhead app

Question

2.00 points Tyler Tooling Company uses a job order cost system with overhead appied to products on thhe basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at S202,8B0 and total machine hours at 63,400. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 103 Job 102 5 8,800 $ 6 100 Tolal Direct materials used Direct labor Machine ncurs S 10,600 17,700 S 1,100 5 000 S 23.300 s 28 800 1,400 hours 2,700 hours 1,400 hours 5500 hours Job 101 was completed and sold for $50,500 Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations tolaled S16,600 Required: 1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) per Machine Hour redelenriined Overhead Rale 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. Round your intermediate calculations to 2 decimal places.) Applied Ma 3. Compute the balance in the Work in Process Inventory account at the end of the first month. Round your intermediate calculations to 2 decimal places.) Work in ProcesS 4. How much gross profit would the company repcrt during the first month of operations before making an ad ustment for over- or underapplied manufacturing overhead? (Round your intermediate calculations to 2 decimal places.) 5-a. Determine the balance in the Manufacturing Overhead aocount at the end of the first month. (Round your intermediate calculations to 2 decimal places.) 5-b. Is it over- or underapplied? Overapplied

Explanation / Answer

1 Predetermined overhead rate = 202880/63400= $3.2 per machine hour 2 Total applied manufacturing overhead = 5500*3.2= $17600 3 Ending work in Process =Cost of Job 103 = 4100+5000+(1400*3.2)= $13580 4 Cost of job 101 = 10600+17700+(1400*3.2)= $32780 Gross Profit = 50500-32780= $17720 5 a Balance = 17600-16600 = $1000 b Overapplied

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