Answer:
1. 9.60 per hour
2. $11,129
3. Dr Manufacturing overhead 172500
Cr Lease payable 6800
Cr Accumulated depreciation-Building 19340
Cr Wages payable 90400
Cr Utilities payable 14560
Cr Account payable 41400
4. Over applied overhead= $1,260
5. $634,340
Explanation:
1) Calculation for the overhead rate for the year
Using this formula
Overhead rate = Estimated overhead/Estimated hour
Let plug in the formula
Overhead rate = 129600/13500
Overhead rate = 9.60 per hour
2) Calculation for the total cost of Job K456
Total cost of Job K456
Direct material 2750
Direct labor 5355
Overhead 3024
(5355/17*9.60)
Total cost of Job $11129
3) Preparation of the journal entries to record actual overhead and to apply overhead to production for the year.
Dr Manufacturing overhead 172500
(6800+19340+90400+14560+41400)
Cr Lease payable 6800
Cr Accumulated depreciation-Building 19340
Cr Wages payable 90400
Cr Utilities payable 14560
Cr Account payable 41400
(Being To record actual overhead)
Work in process (18100*9.6) 173760
Manufacturing overhead 173760
(To record applied overhead)
4) Calculation for whether overhead is overapplied or underapplied
Over applied overhead = 173760-172500
Over applied overhead= $1260
5) Calculation for the adjusted cost of goods sold
Adjusted cost of goods sold = 635600-1260
Adjusted cost of goods sold= $634340
