Question

Mallet Music Company makes custom marimbas and xylophones. Since much of the work on these musical instruments is done by hand, the company uses direct labor hours as its manufacturing overhead application base. The company's annual budgeted overhead costs for 72,500 direct labor hours totaled $580,000.

Required
a. Assume that during the year, the company incurred manufacturing overhead totaling
$586,000 for 72,500 direct labor hours. By how much was manufacturing overhead under- or over applied for the year?
b. Assume that during the year, the company incurred manufacturing overhead totaling
$586,000 for 73,550 direct labor hours. By how much was manufacturing overhead under- or over applied for the year?
c. Assume that during the year, the company incurred manufacturing overhead totaling
$590,000 for 73,550 direct labor hours. By how much was manufacturing overhead under- or over applied for the year?



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  • CreatedFebruary 21, 2014
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