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The Green company produces chairs according to customer specifications. Its normal order cost system consists of...

The Green company produces chairs according to customer specifications. Its normal order cost system consists of 2 categories of direct costs (materials and labor) and one category of indirect manufacturing costs (single cost pool). Manufactory overhead are applied using a rate based on machine hours. The following was budgeted for 2020.
Direct labor 1,350,000
Manufactory Overhead 990,000
Machine hours 24,750

At the end of 2020, two orders were identified with the following accumulated costs:

Order 1

Order 2

Direct materials 2,300

Direct materials 4,200

Direct labor 1,875

Direct labor 3,900

Machine hours used 50

Machine hours used 75

The total current costs that the green company accumulated for 2020 was
Manufactury overhead 1,025,000
Direct labor 1,400,000
The total hours of machine hours used during 2020 were 26,000
a. Determine the CIM application rate

b. Make the entry on the day of December 31 that summarizes the total application of Manufactury Overhead for 2020 using the following acounts:
Inventory of work in Process in process
manufacturing overhead costs


c. Determine the over or under-application of Manufactory Overhead for 2020. Clearly indicate if the figure is over or under applied. Use a T account to demonstrate.

d. Calculate the total cost of the Order 1.

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