Example 3.1 The following data pertain to the Oneida restaurant Supply Company for the year just ended: Rudget sales rever OMR 945 Budgeted manufacturing overhead OMR 60 000 Budgeted machine hours Budgeted direct laheshwar 25 000 Budgeted direct lahe rale OMRI Actual manufacturing overhead OMR 690,000 Actual maching hours 22000 Actual direct-laher hours 26.000 Actual direct laborate OMR 14 Required 1. Compute the firm's predetermined overhead rate for the year using each of the following common costs drivers: a. machine hours, b. direct-labor hours c. direct-labor dollars 2. Calculate the overapplied or underapplied overhead for the year using each of the cost drivers listed above. Exercise: 3.1 The following data pertain to the Oneida restaurant Supply Company for the year just ended: Budet sales reve OMR 205000 Budgeted manufacturing overhead OMR 1000 Budgeted machine hours 10.000 Budreted direct labor hours 20.000 Rudected direct labore OMR 14 Actual manufacturing overhead OMR 16000 Actual machine hours 11.000 Actual direct-labor hours 18.000 Required Actual direct-labor rate OMR 15 1. Compute the firm's predetermined overhead rate for the year using each of the following common costs drivers a. machine hours, b. direct-labor hours c.direct-labor dollars 2. Calculate the overapplied or underapplied overhead for the year using cach of the cost drivers listed above. Example: 3.2 Selected data concerning the past year's operatives of the Rose Company are as follows Reginning Raw material OMR 142,000 OMR 162.000 Work in process 160.000 60.000 Finished goods 180.000 220,000 Other data Direct material used 652.000 Total manufacturing costs charged to production during the year (Includes direct material, direct laber, and manufacturing overhead applied at rate of 60% of direct labor cost 1,372,000 cost of goods available for sale Rewired 1. What was the cost of raw material purchased during the year? 2. What was the direct labor cost charged to production during the year! 3. What was the cost of goods manufactured during the year? What was the cost of goods sold during the year? 1