Question

TR. 30,000 Direct labor Manufacturing overhead Tk. 40,000 Find the total manufacturing costs associated with Job 123 D. Dukes Company used a predetermined overhead rate this year of Tk 2 per direct ahor hour, based on an estimate of 20,000 direct labor hours to be worked during the yoar. Actual costs and activity during the year were Actual manufacturing overhead cost incurred Actual direct labor hours worked What was the under or overapplied overhead for the year? 7 6 Tk. 38,000 18,500 3-2 10 Question No. 3 Distinguish between product cost and periodic cost

dukes company used predetermined overhead rate of 2 dollars per direct labor. based on an estimate of 20000 direct labor hours. actual manufacturing overhead cost incurred 38000 actual direct labor hours 18500 what was the overapplied or undeapplied manufacturing for the year. what was the under or over applied overhead for the year.

Answer 1

An swer: Under-applied overhead = Tk. 1,000 Calculation of amount of overhead applied: Actual direct labor hours worked =18,500 Amount of overhead applied Actual hours worked x Predetermined overhead rate 18,500 hours x Tk. 2 per hour = Tk. 37,000 Computation of under or over applied overhead: Actual overhead cost incurred Tk. 38,000 Overhead applied =Tk. 37,000 Since the amount of overhead applied (Tk. 37,000) is less than the actual overhead cost incurred (Tk. 38,000), the overhead is said to be under -applied Und er - applied overhead = Overhead applied - Actual overhead cost incurred -Tk. 37,000- Tk. 38,000 = Tk. 1,000