Question

Required information The Foundational 15 [LO3-1, LO3-2, LO3-3, LO3-4) (The following information applies to the questions displayed below.) Part 2 of 2 Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: 0.75 points Raw materials Work in process Finished goods $ 62,500 $ 23,200 $ 36,900 eBook The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $11.00 per direct labor-hour was based on a cost formula that estimated $440,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: Print References a. Raw materials were purchased on account, $694,000. b. Raw materials use in production, $644,800. All of of the raw materials were used as direct materials. C. The following costs were accrued for employee services: direct labor, $390,000; indirect labor, $150,000; selling and administrative salaries, $246,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $430,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities). $290,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $2,827,500. The jobs cost $1,413,100 to manufacture according to their job cost sheets. Foundational 3-9 9. Is manufacturing overhead underapplied or overapplied for the year? By how much? Overapplied overhead

Required information The Foundational 15 [LO3-1, LO3-2, LO3-3, LO3-4] [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials $ 62,500 Work in process $ 23,200 Finished goods $ 36,900 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $11.00 per direct labor-hour was based on a cost formula that estimated $440,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: Raw materials were purchased on account, $694,000. Raw materials use in production, $644,800. All of of the raw materials were used as direct materials. The following costs were accrued for employee services: direct labor, $390,000; indirect labor, $150,000; selling and administrative salaries, $246,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $430,000. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $290,000. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. Jobs costing $1,403,100 to manufacture according to their job cost sheets were completed during the year. Jobs were sold on account to customers during the year for a total of $2,827,500. The jobs cost $1,413,100 to manufacture according to their job cost sheets.

Answer 1

9
Actual direct labor hours	41000
X Predetermined overhead rate	11.00
Manufacturing overhead applied	451000
Indirect labor	150000
Various manufacturing overhead costs	290000
Actual Manufacturing overhead costs	440000
Manufacturing overhead applied	451000
Less: Actual Manufacturing overhead costs	440000
Overapplied overhead	11000