Question

to the toth o th T. Verizox company uses a job order system with manufacturing overhead applied to products, based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $182,360. Estimated direct labor cost was $485,ooo for 19,400 hours Actual cost summarized here: $48,50l b Direct labor (19.400 hours) Indirect cost Indirect labor Indirect materials factory rent Factory Superision. Factory depreciation Factory jabitonal work factory insurance general administrative salaries selling expenses 2.550 3.490 3,230 4,720 S, leko 1170 1720 4,140 5,490

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Verizon Company
Answer 1
Calculation of predetermined overhead rate
	Amount $	Note
Expected manufacturing overhead	182,360.00	A
Estimated Labor hours	19,400.00	B
Predetermined overhead rate	9.40	C=A/B
Answer 2
Calculation of overhead applied	Amount $
Actual Labor hours	19,400.00	D
Predetermined overhead rate	9.40	See C
Manufacturing overhead applied	182,360.00	E=C*D
Answer 3
Calculation of actual manufacturing overhead	Amount $
Indirect Labor	2,550.00
Indirect Materials	3,490.00
Factory rent	3,230.00
Factory supervision	4,720.00
Factory depreciation	5,660.00
Factory janitorial work	1,170.00
Factory insurance	1,760.00
Actual manufacturing overhead	22,580.00	F
Answer 4
Calculation of under applied/ over applied overhead	Amount $
Manufacturing overhead amount applied	182,360.00	See E
Actual Manufacturing overhead	22,580.00	F
Over applied	159,780.00	G=E-F
Please note that general & administrative salaries and selling expense are not manufacturing overhead so not considered.
Also although I have given the solution but as question is handwritten so I may have misread some figures. Request you to please cross check from your side.