a company applies mfg overhead cost as a percentage of direct labor dollars. cal

Question

a company applies mfg overhead cost as a percentage of direct labor dollars. calculate the predetermined oh Tate applied Moh and the amount over/under applied There are 2 [Graded] items 1. [Graded] A company applies mfg overhead cost as a percentage of direct labor dollars. Calculate the predetermined OH rate, applied MOH and the amount overlunder applied: Direct labor cost Manufacturing overhead Estimated Actual 100 50 120 70 104A 2. [Graded] What is the total cost of Job 201 if it was completed at the end of the current month? The company applied MOH at a rate of $4 per DL hour 250 WIP Beginning Balance This month's direct materials50 This month's direct labor Total DL hours 75 25 Beginning Work in Process Beginning WIP percentage complete Costs for Beginning WIP March 300 units 44% Direct Materials cost Conversion cost $?2 $ 5,940 $ 8,340 Total cost of beginning work in process Number of units started Number of units completed 250 units 100 units ?? units 38 % Ending Work in Process Ending WIP percentage complete Costs for units started in current month Direct Materials cost Conversion cost $ 2,000 Total cost for units started in current month $ 8,255

Explanation / Answer

Q1. Pre-determined OH rate: Estimated OH/ Estimated Direct labour cost *100 50 / 100 *100 = 50% of labour cost Under/Over-applied OH: OH incurred 70 Less: OH applied (120*50%) 60 Under-applied OH 10 Q2. Total Cost of Job : Beginning WIP 250 Add: Current cost Material 50 labour 75 OH (25 DLH at 4) 100 Total Cost of Job : 475

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