5. Baker Corporation applies manufacturing overhead on the basis of direct labor
ID: 2485170 • Letter: 5
Question
5. Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $73,140 and 2,300 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $75,290 and actual direct labor-hours were 2,200.
The applied manufacturing overhead for the year was closest to: (Round your intermediate calculations to 2 decimal places.)
$74,808
$71,640
$69,960
$66,984
6. Meyers Corporation had the following inventory balances at the beginning and end of November:
November 1
November 30
Raw Materials
$
80,000
$
28,000
Finished Goods
$
220,000
$
150,000
Work in Process
$
46,000
$
50,000
During November, $170,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $9 per direct labor-hour, and it paid its direct labor workers $14 per hour. A total of 1,000 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $20,000 of direct materials cost. The Corporation incurred $120,000 of actual manufacturing overhead cost during the month and applied $110,000 in manufacturing overhead cost.
The actual direct labor-hours worked during November totaled: (Round your answers to the nearest dollar.)
8,571 hours
7,857 hours
13,333 hours
12,222 hours
The applied manufacturing overhead for the year was closest to: (Round your intermediate calculations to 2 decimal places.)
Explanation / Answer
5. Predetermined Overhead Rate = Total Cost / Number of Hours = $73140 / 2300
= $31.80 per hour
Overheads would be applied on the nasis of actual hours = 2200 hours * $31.80 per hour = $69960
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