Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 33,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $531,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead for the year was $662,995 and its actual total direct labor was 33,500 hours.
Required:
1, Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.) 2,
Compute the underapplied or overapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)
2, Mickley Company's predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following information pertains to Job A-500:
3, The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
4, Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:
| Machine-hours |
|
89,000 |
| Fixed manufacturing overhead cost |
$ |
1,275,000 |
| Variable manufacturing overhead per computer-hour |
$ |
3.30 |
During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year:
| Machine-hours |
|
50,000 |
|
| Manufacturing overhead cost |
$ |
961,000 |
Required:
1. Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
| Manufacturing overhead costs incurred: |
|
|
| Indirect materials |
$ |
16,900 |
| Indirect labor |
|
149,000 |
| Property taxes, factory |
|
9,900 |
| Utilities, factory |
|
89,000 |
| Depreciation, factory |
|
316,900 |
| Insurance, factory |
|
11,900 |
| |
| Total actual manufacturing overhead costs incurred |
$ |
593,600 |
| |
| Other costs incurred: |
|
|
| Purchases of raw materials (both direct and indirect) |
$ |
419,000 |
| Direct labor cost |
$ |
79,000 |
| Inventories: |
|
|
| Raw materials, beginning |
$ |
21,900 |
| Raw materials, ending |
$ |
31,900 |
| Work in process, beginning |
$ |
41,900 |
| Work in process, ending |
$ |
71,900 |
The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $28 per machine-hour. A total of 21,600 machine-hours was recorded for the year.
Required:
1. Compute the amount of underapplied or overapplied overhead cost for the year.
| Direct materials |
$240 |
| Direct labor |
$165 |
Required:
1. What is the total manufacturing cost assigned to Job A-500?