The Taylor Company uses a job order cost system to assign costs to customers.
The Work in Process
account below is for the month of November:
Work in Process
Taylor applies overhead to customers on a basis of direct labor cost.
The $75,000 ending balance
applies to only one customer, Joe.
Joe has already been allocated $17,500 of manufacturing
How much direct materials cost has been used on Joe’s order?
Based on the above information, the cost of direct materials used is
Balloons, Inc. had actual overhead costs of $162,000 and budgeted overhead costs of $178,500 for
Balloons applied overhead based on machine hours.
Actual and budgeted machine hours for
2007 were 20,000 and 21,000, respectively.
For 2007, Balloons had:
overapplied overhead of $8,000.
underapplied overhead of $8,000.