6-25. (25 min.)
Estimate Hours Worked From Overhead Data: Griffin
40,300 direct labor hours were worked. With $156,000 in fixed costs expected
and 39,000 direct labor hours expected, the application rate for the fixed costs
was $4.00 per direct labor hour. If the overapplied overhead, all due to
production volume, is $5,200, then an extra 1,300 direct labor hours were worked
($5,200 ÷ $4 per hour). Consequently, 40,300 (= 39,000 + 1,300) direct labor
hours were worked.
Also, see T accounts below:
Manufacturing Overhead Applied
(given as actual =
(= $4 x Actual
From these accounts, we solve for actual hours worked:
Actual hours worked = $161,200 ÷ $4 = 40,300 hours worked.
6-26. (40 min.)
Assigning Costs—Missing Data.
(a) $100,000, the other side of the credit to the Accounts Payable—Materials
(b) $94,000, From the Materials Inventory account,