During 2006, Greg Company applies overhead using a normal costing system at a rate
of $12 per direct labor hour.
Estimated direct labor hours for the year were 150,000,
estimated overhead for the year was $1,800,000.
Actual direct labor hours for 2006
were 140,000 and actual overhead was $1,700,000.
What is the amount of under or
over applied overhead for the year?
Miller Company bought $150,000 of direct material during August, incurred $90,000
in direct labor cost, and had $130,000 in manufacturing overhead. Inventories for
August were as follows:
Work in Process
What is the cost of goods sold for August?
Which of the following is
a product cost in a factory making tennis balls?
The commission paid to sell the tennis balls.
The cost of the gym provided for production employees.
The cost of the material used in the tennis balls.
The depreciation on the machine that puts the balls into the can they are sold in.
Almeda Company applies overhead on the basis of direct labor hours using a
Before 2006, it was estimated that overhead would be
$2,000,000 and 100,000 direct labor hours would be worked.
Actual results for the
year were $2,200,000 in overhead incurred and 106,000 direct labor hours worked.
What overhead application rate would be used during 2006?