Question

MonkeySuits, Inc. makes costumes for movies and television shows. Jay Tribini, the company’s owner, prepared the following estimates for the upcoming year:
Manufacturing overhead cost ...... $660,000
Direct labor hours ......... 30,000
Direct labor cost............ $300,000
Machine hours ........... 25,000

Required
a. Assume that Monkey Suits applies manufacturing overhead on the basis of direct labor hours. During the year, 33,400 direct labor hours were worked. How much overhead was applied to work in process? If actual manufacturing overhead for the year was
$ 728,600, was overhead under- or over applied during the year? By how much?
b. Assume that Monkey Suits applies manufacturing overhead on the basis of direct labor cost. During the year, $329,000 in direct labor cost was incurred. How much overhead was applied to work in process during the year? If actual manufacturing overhead for the year was $728,600, was overhead under- or over applied during the year? By how much?
c. Assume that Monkey Suits applies manufacturing overhead on the basis of machine hours. During the year, 24,680 machine hours were worked. How much overhead was applied to work in process during the year? If actual manufacturing overhead for the year was $728,600, was overhead under- or over applied during the year? By how much?



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  • CreatedFebruary 21, 2014
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