tes its manuf to be $648,000 and its direct labor costs to be $480,000 for year
ID: 2539488 • Letter: T
Question
tes its manuf to be $648,000 and its direct labor costs to be $480,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $156,000. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $281,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $106,000. Actual manufacturing overhead for year 2 was $725,000. Manufacturing overhead is applied on the basis of direct labor costs Required a. How much overhead was applied to each joh in year 2? Job 2-1 Job 2-2 Job 2-3 b. What was the over- or underapplied manufacturing overhead for year 2?Explanation / Answer
estimated overhead ( year 2)
manufacturing overhead (MOH) =648000
direct labour( DL) =480000
manufacturing overhead rate = 135% ( MOH rate = MOH / DL)
ans 1) Job 2-1 Job 2-2 Job 2-3
direct labour 156000 281000 106000
MOH rate 135% 135% 135%
AOH 210600 379350 143100
ans 2)
AOH:
job 2-1 210600
job 2-2 379350
job 2-3 143100
total AOH 733050
actual OH 725000
overapplied OH 8050
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