Wildcat Company uses a job costing system that applies factory overhead based on direct labor. No job
Question:
Wildcat Company uses a job costing system that applies factory overhead based on direct labor. No job was in process on February 1.During February, the company worked on these three jobs. During the month, the company
completed and transferred Job B10 to the finished goods inventory. Jobs C44 and G15 were not completed and remain in work in process at the cost of $148,650 at the end of the month. Actual factory overhead costs during the
month totaled $38,500.
Job Number
B10 C44 G15
Direct Labor $34,000 ? $10,000
Direct Materials $42,000 $61,000 ?
Overhead applied ? $20,750 $6,000
Other Data. C44 and G15 Work in Process = $148,650
Actual overhead cost = $38,500
Required
What is the predetermined Factory overhead rate
Compute the amount of under and over applied for February
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins