Question

The direct labor rate for Brent Corporation is $9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour. During May, the company purchased $60,000 in raw materials (all direct materials) and worked 3,200 direct labor-hours. The Raw Materials Inventory (all direct materials) decreased by $3,000 between the beginning and end of May. The Work in Process Inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked. There was no Work in Process Inventory on May 31. If overhead was underallocated by $2,500 during May, what is the actual manufacturing overhead cost

Answer 1

Answer:

The actual overhead cost for manufacturing is $21700

Explanation:

Given data:

Pre determine overhead cost = $6

Number of hour of direct labor = 3200 hr

Under applied overhead = $2500

actual manufacturingg overhead cost can be determined as

$actual\ overhead\ cost = [pre-determned\ overhead\ cost \times direct\ labor\ hours] + applied\ overhead$

putting all value to get the required value of actual overhead cost

actual overhead cost $= [ 6 \times 3200 hr] + 2500$

                                   $= 19200 + 2500$

                                    = $21700

The actual overhead cost for manufacturing is $21700