Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the
Question:
Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 20,000 hours and the total estimated manufacturing overhead was $352,500. At the end of the year, actual direct labor-hours for the year were 25,000 hours and the actual manufacturing overhead for the year was $436,890. Overhead at the end of the year was: *
$2,988 underapplied
$3,735 underapplied
$3,735 overapplied
None of the above
The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $3,500. A total of 40 direct labor hours and 146 machine-hours were worked on the job. The direct labor wage rate is $15 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost for the job on its job cost sheet would be: *
$4,700
$4,100
$6,290
None of the above
Intermediate Accounting
ISBN: 978-1259548185
8th edition
Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas