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LaborDirect labor hours350030002000Labor Costs$204,000$ 15,000$ 6,000MaterialInventories, Nov 1$10,500$54,000$112,500Purchases of raw material and supplies:$135,000$ 15,000Direct material and supplies requisitioned for production$45,000$37,500$25,500Supplies (indirect material) $12,000$120,000OtherBuilding occupancy costs (gas, electric, depreciation Factory facilities $6,400$1,600administrative offices $1,000Total $9,000Production equipment costs$4,100Repairs $1,500Depreciation $1,500$1,000Total $8,100Job ordering costing system uses direct-lbor hours as the cost driver for overhead application. In December of the precedng year, they had prepared the following budget for direct-labor and manufacturing overhead costs for the current year. The plant is capable of operating at 150,000 direct labor hours per year. However, they estimate that the normal usage is 120,000 hours in a typical year.manufacturing overheadfixed$216,000$216,000$216,000During November the following were completedside chairsend tables1. Calculate the predetermined overhead rate for the current year2. Calculate the total cost of job 77November4. What was the total amount of manufacturing overhead applied during November5. Compute the ACTUAL manufacturing overhead incurred during November6. Calculate the overapplied or underapplied overhead for November.
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