Problem 1

Factory overhead for the Praeger Company has been estimated as follows:

Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000.

Calculate:

a. The predetermined factory overhead rate.

b. The under- or overapplied factory overhead.

 Problem 2

The Tidle Manufacturing Company uses a job order cost system.  Factory wages are paid on a straight hourly basis with indirect labor getting $8.50 an hour and direct labor getting $10.00 an hour.

During the week of January 7, the following hours were worked:

Salaries and wages are paid weekly, with administrative salaries totaling $16,500 and salesperson's salaries totaling $12,200.

The following deductions are to be considered:

Prepare journal entries to record:

a. The payroll.

b. The payment of the payroll.

c. The payroll distribution.

d. The employer's payroll tax expense.

Problem 3

The Outdoor Manufacturing Company produces sporting equipment. The company maintains a single raw materials inventory account for both direct and indirect materials.  The following information came from the factory ledger accounts for December:

Compute the cost of direct materials used during the month of December.