Marigold Company manufactures a line of lightweight running shoes. CEO Mark Marigold estimated that the company would incur $2,787,680 in manufacturing overhead during the coming year. When Marigold Company uses direct labor hours as its manufacturing overhead application base, predetermined overhead rate is $12.67/DLH and when it uses machine hours as its manufacturing overhead application base, predetermined overhead rate is $5.32/MH. Additionally, he estimated the company would operate at a level requiring 220,022 direct labor hours and 524,000 machine hours. At the end of the year, Marigold Company had worked 214,000 direct labor hours, used 358,000 machine hours, and incurred $2,533,000 in manufacturing overhead.

If Marigold Company used direct labor hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year?

Overhead applied

$

Using direct labor hours as the application base, was manufacturing overhead under- or overapplied for the year? By how much?

Manufacturing overhead over applied or under applied by $

If Marigold Company used machine hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year?

Overhead applied

$

Using machine hours as the application base, was manufacturing overhead under- or overapplied for the year? By how much?

Manufacturing overhead overapplied or underapplied by $ .

Answer rating: 100% (QA)

Applied overhead to jobs during the year using Direct labor hours Applied overhead is ... View the full answer