Parker Corporation uses a job costing system and applies manufacturing overhead to jobs using a predetermined overhead
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Question:
Parker Corporation uses a job costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. Last year, manufacturing overhead costs and direct labor hours were estimated to be $97,680 and 26,400 hours, respectively, for the year.
In June, Job #461 was completed. Material costs on the job totaled $5,200 and labor costs totaled $2,604 at $6.20 per hour. At the end of the year, it was determined that the company worked 30,800 direct labor hours during the year and incurred $107,660 in actual manufacturing overhead.
Determine the underapplied or overapplied overhead for the year.
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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