Question: Cooper Ltd. uses a job-order costing system with machine hours as the allocation base for overhead. The company uses normal costing to develop their overhead


Cooper Ltd. uses a job-order costing system with machine hours as the allocation base for overhead. The company uses normal costing to develop their overhead allocation rate. The following information is available at the beginning of the year: Estimate Estimated factory overhead costs $1,600,000 Estimated machine hours 100,000 On August 31 the following information was available: Job # Job # Description 1020 1021 Direct materials $12,000 $3,150 Direct labour $8,500 $4,000 Machine hours 120 30 Required: Use the job order costing system to answer the following questions. The predetermined plantwide overhead rate is $ per machine hour. A/ The amount of overhead applied to Job 1020 is $ A/ The total cost of Job 1020, after overhead is applied, is $ A Job 1020 was completed and the client was billed cost plus 60%. The price charged for Job 1020 was $ A/ The total cost of Job 1021, after overhead is applied, is $. A/ At the end of the year total actual machine hours were 94,000. Therefore, total overhead applied to all jobs for the year was $_ A/ In addition, at the end of the year actual factory overhead was $1,472,000. Given this information, is factory overhead over-applied (enter OA), under- In addition, at the end of the year actual factory overhead was $1,472,000. Given this information, is factory overhead over-applied (enter OA), under- applied (enter UA), or neither (enter NA). Be sure to enter the correct letters! A Given the above information, the total over- or under-applied factory overhead for the year was $_ Enter your answer as a positive number. A
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