Question

1.Showboat Corporation had actual manufacturing overhead costs for the most recent year of $ 29,700.Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $3.50 per direct labor hour. Direct labor cost is $27 per hour. At the end of the​ year, Cabaret Corporation found it had overallocated manufacturing overhead by $1,350. How much manufacturing overhead was allocated in total during the​ year?

2.Barefoot Running​ Company's work in process inventory on June 1 has a balance of $23,300 representing Job No. 265. During​ June, $50,700 of direct materials were requisitioned for Job No. 265 an 0$35,300 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 115​% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,200. No new jobs were started during June. Job No. 265 is completed on June 28. What is the total cost assigned to Job No.​ 265?

3.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. Selected data about the​ company's operations​ follows:

Actual manufacturing overhead cost	$500,600
Estimated manufacturing overhead cost	$550,600
Estimated direct labor cost	$175,800
Estimated direct labor hours	50,600
Actual direct labor hours	60,700
Estimated machine hours	40,200
Actual machine hours	35,200

By how much was manufacturing overhead overallocated or underallocated for the​ year? (Round intermediary calculations to the nearest​ cent.)

Answer 1

• [1]
  >Manufacturing Overhead allocated = Actual overhead + Overhead allocated overhead – Underallocated overhead
  = $ 29700 + $ 1350
  = $ 31,050 Answer
• [2]
  Cost assigned to Job no 265 = $ 23300 beginning balance + $ 50700 direct material + $ 35300 direct labor cost + $ (35300 x 115%) manufacturing overhead
  = 23300 + 50700 + 35300 + 40595
  = $ 149,895 Answer
• [3]
  >Overhead rate = $ 550600 / 50600 DLHs = $ 10.88 per DLH
  >Actual no. of DLHs = 60700
  >Overhead applied = 60700 x 10.88 = $ 660,416
  >Actual Overhead cost = $ 500,600
  >Overhead are OVERALLOCATED by $ 159,816 [660416 – 500600]

answered by: anonymous