Homework Answers
1.
Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor hours
= 182,360/19,400
= $9.4 per direct labor hour
2.
Applied manufacturing overhead = Actual direct labor hours x Predetermined overhead rate
= 1,940 x 9.4
= $18,236
3.
Actual manufacturing overhead = 2,550+3,490+3,230+4,720+5,660+1,170+1,760
= $22,580
4.
Under applied overhead = Actual manufacturing overhead - Applied manufacturing overhead
= 22,580-18,236
= $4,344
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Verizox Company uses a job order cost 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 $169,260. Estimated direct labor cost was $453,180 for 18,200 hours. Actual costs for the most recent month are summarized here: Total Cost $ 45,319 Item Description Direct labor (1,820 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work...
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