Question

As manufacturing overhead overallocated or​ underallocated? by how​ much? during​ january, actual manufacturing overhead costs totaled ​$ nothing. by the end of​ january, a total of ​$ nothing had been allocated to jobs.​ therefore, manufacturing overhead had been ▼ overallocated underallocated by ​$ nothing.

Answer 1

Answer:

overapplied for 20,200

Explanation:

Predetermined overhead rate:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

350,000/250,000 = 1.4

each dollar of labor generates 1.4dollar of overhead

Applied overhead:

63,000 x 1.4 = 88,200

actual overhead: 62,000

82,200 - 62,000 = 20,200

NOTE: INCOMPLETE INFORMATION

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company. Work in process inventory $0 Raw materials inventory $28,000 Finished goods inventory $40,000 Additional data: 1) actual manufacturing overhead for January amounted to $62000 2) Total direct labor cost for januray was $63,000 3) The predetermined manufacturing overhead rate is based on direct cost. The budget for the year called for $250,000 of direct labor cost and $350,000of manufacturing overhead costs. 4) The only job unfinished on January 31 was Job. 151 for which total direct labor charges were $5,200( 800 direct labor hours) and total direct material charges were $14,000 5) Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January. 6) January 31 balance in raw materials inventory was $35,000 7) Finished goods inventory balance on January 31 was $34,500