Minstrel Manufacturing uses a job order costing system. During one month Minstre
ID: 2538399 • Letter: M
Question
Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, paid in cash, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel Incurred total overhead costs of $167800 during the month, compute the amount of under- or overapplied overhead O $2.800 overapplied. O $17800 underapplied O $2,800 underapplied. $17,800 overapplied. O $57,200 overapplied.
Explanation / Answer
$2,800 Underapplied Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Factory Payroll 150,000.00 Incirect Labour 40,000.00 Direct Labour = 150000 - 40000 110,000.00 Applied overhead = 110000 *150% 165,000.00 Actual Overhead 167,800.00 Applied Overhead 165,000.00 Underapplied overhead 2,800.00