AT&T LTE 6:36 PM * 90% × Chapter 2 Homework Assignment Dobson Manufacturing Comp

Question

AT&T LTE 6:36 PM * 90% × Chapter 2 Homework Assignment Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its totall direct labor cost to be $57,600 and its total manufacturing overhead cost to be $109,440. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate. 2. Fill in the missing values in the T-accounts 3. Compute over- or underapplied overhead.

Explanation / Answer

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1 Predetermined overhead rate 190% (109440/57600) 2 Overhead applied = direct labor * 190% 79230 (41700*190%) 3 Actual overheads 50700 Overheads applied 79230 Over applied 28530

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