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A) Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 34,000 actual direct labor-hours and incurred $512,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 32,000 direct labor-hours during the year and incur $480,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

underapplied by $30,000

underapplied by $2,000

overapplied by $2,000

overapplied by $30,000

B) Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 12,900 hours and the total estimated manufacturing overhead was $295,410. At the end of the year, actual direct labor-hours for the year were 12,400 hours and the actual manufacturing overhead for the year was $279,840. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)

$9,120 overapplied

$4,120 overapplied

$9,120 underapplied

$4,120 underapplied

C) At the beginning of the year, manufacturing overhead for the year was estimated to be $270,320. At the end of the year, actual direct labor-hours for the year were 22,500 hours, the actual manufacturing overhead for the year was $270,500, and manufacturing overhead for the year was overapplied by $8,500. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Round your intermediate calculations to 2 decimal places.)

22,500 direct labor-hours

21,400 direct labor-hours

20,300 direct labor-hours

21,800 direct labor-hours

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M91363304

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