Question

# Nexus Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead...

Nexus Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was \$1,946,200 and its estimated level of activity was 52,600 direct labor-hours. The company's direct labor wage rate is \$12 per hour. Actual manufacturing overhead amounted to \$3,072,000, with actual direct labor cost of \$1,020,000. For the year, manufacturing overhead was:

#### Homework Answers

Answer #1
 Manufacturing overhead over applied \$                73,000 Estimated manufacturing overhead \$          19,46,200 Estimated level of activity 52600 (direct labour-hours) labour wage rate \$                        12 Actual manufacturing overhead \$          30,72,000 actual direct labour cost \$          10,20,000 Predetermined overhead rate =(Estimated total manufacturing overhead÷ Estimated total direct labour-hours) Predetermined overhead rate 1946200/52600 Predetermined overhead rate \$                        37 Actual direct labour-hours = Actual direct labour cost ÷ wage rate per hour Actual direct labour-hours 1020000/12 Actual direct labour-hours 85000 (direct labour-hours) Manufacturing overhead applied =Actual direct labour-hours× Predetermined overhead rate Manufacturing overhead applied = (85000*37) Manufacturing overhead applied = \$          31,45,000 Less : Manufacturing overhead incurred \$        -30,72,000 Manufacturing overhead over applied \$                73,000
Know the answer?
Your Answer:

#### Post as a guest

Your Name:

What's your source?

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Not the answer you're looking for?
Ask your own homework help question
ADVERTISEMENT
##### Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

ADVERTISEMENT