- The amount of overhead applied to each of the four jobs are $121,600, $166,400, $216,000 and $107,200 respectively.
- The overapplied manufacturing overhead for year 1 is equal to $128,000.
<h3>How to calculate the amount of overhead?</h3>
First of all, we would calculate the predetermined overhead rate by using this formula:
Predetermined overhead rate = Manufacturing overhead/Direct material costs
Predetermined overhead rate = $2,342,400/$1,464,000
Predetermined overhead rate = 1.6 per DM $.
Next, we would calculate the overhead applied by using this formula:
Overhead applied = Job × DM cost
For job 0701, we have:
Overhead applied = 76,000 × 1.6
Overhead applied = $121,600.
For job 0702, we have:
Overhead applied = 104,000 × 1.6
Overhead applied = $166,400.
For job 0703, we have:
Overhead applied = 135,000 × 1.6
Overhead applied = $216,000.
For job 0704, we have:
Overhead applied = 67,000 × 1.6
Overhead applied = $107,200.
<h3>Part B.</h3>
For the overapplied manufacturing overhead for year 1:
Less applied overhead = $1,630,000 × 1.6
Less applied overhead = $2,608,000.
Overapplied manufacturing overhead = Actual overhead cost - Less applied overhead
Overapplied manufacturing overhead = $2,480,000 - $2,608,000
Overapplied manufacturing overhead = $128,000.
Read more on overhead cost here: brainly.com/question/26475885
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