Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the...

 

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Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $808,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. 64 Direct Material $21,000 Direct Labor $35,000 65 22,000 Machine Hours 1,200 700 66 67 44,000 15,000 65,000 8,800 2,000 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($33,300), indirect labor ($60,100). indirect materials used ($5,100), and other factory costs ($139.600). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,700 for the firm. 5. Was manufacturing overhead under- or overapplied for the first quarter of the year? By how much? (Do not round Intermediate calculations.) Answer is complete but not entirely correct. The overhead was underapplied for the first quarter of the year by $ 18,000 Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $808,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. 64 Direct Material $21,000 Direct Labor $35,000 65 22,000 Machine Hours 1,200 700 66 67 44,000 15,000 65,000 8,800 2,000 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($33,300), indirect labor ($60,100). indirect materials used ($5,100), and other factory costs ($139.600). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,700 for the firm. 5. Was manufacturing overhead under- or overapplied for the first quarter of the year? By how much? (Do not round Intermediate calculations.) Answer is complete but not entirely correct. The overhead was underapplied for the first quarter of the year by $ 18,000

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