Ask Question
16 December, 18:12

During 2012, Pavers Manufacturing expected Job No. 59 to cost $300,000 of overhead,$500,000 of materials, and $200,000 in labor. Pavers applied overhead based on directlabor cost. Actual production required an overhead cost of $280,000, $550,000 inmaterials used, and $220,000 in labor. All of the goods were completed. How much isthe amount of over - or underapplied overhead?

+4
Answers (1)
  1. 16 December, 21:47
    0
    The amount of over applied overhead is $50,000

    Explanation:

    The computation is shown below:

    First, Calculate the predetermined overhead rate which equals to

    = (Overhead cost : labor cost) * 100

    = ($300,000 : $200,000) * 100

    = 150%

    So, the applied overhead equals to

    = 150% * actual labor cost

    = 150% * $220,000

    = $330,000

    So, the over/under applied overhead equals to

    = Applied overhead - actual overhead

    = $330,000 - $280,000

    = $50,000 over applied
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “During 2012, Pavers Manufacturing expected Job No. 59 to cost $300,000 of overhead,$500,000 of materials, and $200,000 in labor. Pavers ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers