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2. During the year, Job 400 was started and completed The following information was available with respect to this job Direct materials requisitioned Direct labor cost Machine-hours used $340 $ 240 30 3 Compute the total manufacturing cost assigned to Job 400. (Do not round intermediate calculations and round final answer to 2 decimal places.) Total manufacturing cost 3-a. During the year the company worked a total of 145.100 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,260,164. What is the amount of underapplied or overapplied overhead for the year? (Use the overhead rate determined in requirement 1.)
Expert Answer
| Answer to Part 1 | |
| Particulars | Amount |
| Fixed Manufacturing Cost | 658,000.00 |
| Variable Manufacturing Cost (159000 x 4.5) | 715,500.00 |
| Total Manufacturing Cost | 1,373,500.00 |
| No of Machine Hours | 159,000.00 |
| Predetermined overhead rate per machine hour | 8.64 |
| Answer to Part 2 | |
| Particulars | Amount |
| Direct Material | 300.00 |
| Direct Labor | 240.00 |
| Overhead applied (30 x 8.64) | 259.15 |
| Total Manufacturing Cost | 799.15 |
| Answer to Part 3-a | |
| Particulars | Amount |
| Overhead Applied (145100 x 8.64) | 1,253,426.73 |
| Actual Expense | 1,260,164.00 |
| Under applied of overhead | 6,737.27 |
Answer to Part 3-b
Under application of overhead will be charged to cost of goods sold which consequently decrease the operating income.
