Question

Job Order Costing Data Allocation base Machine-hours Estimated manufacturing overhead cost $300,000 Estimated total amount of...

Job Order Costing
Data
Allocation base Machine-hours
Estimated manufacturing overhead cost $300,000
Estimated total amount of the allocation base 75,000 machine-hours
Actual manufacturing overhead cost $290,000
Actual total amount of the allocation base 68,000 machine-hours
Enter a formula into each of the cells marked with a ? below
Computation of the predetermined overhead rate
Estimated manufacturing overhead cost ?
Estimated total amount of the allocation base ? machine-hours
Predetermined overhead rate ? per machine-hour
Computation of underapplied or overapplied manufacturing overhead
Actual manufacturing overhead cost ?
Manufacturing overhead cost applied to Work in Process during the year:
Predetermined overhead rate ? per machine-hour
Actual total amount of the allocation base ? machine-hours
Manufacturing overhead applied ?
Underapplied (overapplied) manufacturing overhead ?

Homework Answers

Answer #1

Computation of predetermined overhead rate:

Estimated manufacturing overhead cost

300000

Estimated total amount of allocation base

75,000

machine-hours

Predetermined overhead rate:(300,000/75,000)

4

per machine-hour

Under applied or over applied:

Actual manufacturing overhead cost

290,000

Manufacturing overhead cost applied to Work in process:

Predetermined overhead rate

4

per machine-hour

Actual amount of allocation base

68,000

machine-hours

Manufacturing overhead applied (68,000*4)

272000

Under applied (over applied) manufacturing overhead (290,000 - 272,000)

18,000

Under applied

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