Problem%202-22A[1] - $2136 3 Total cost recorded for Job...

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Problem 2-22A Group 4
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Keep in mind that: Predetermined overhead rate in the Molding dept . is based on machine-hours Predetermined overhead rate in the Painting dept . is based on direct labor cost
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1) Predetermined overhead rate for the Molding dept: Budgeted overhead = $602,000 = $8.60 / machine hours Machine hours 70,000 Predetermined overhead rate for the Painting dept: Budgeted overhead = $735,000 = 1.75 / direct labor dollar Direct labor cost $420,000
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2) Compute the total overhead cost applied to Job 205: Molding dept: $8.60 X 110 machine hours = $946 Painting dept: 1.75 X $680 labor cost = $1190 Total overhead cost = $946 + $1190 =
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Unformatted text preview: $2136 3) Total cost recorded for Job 205: Materials molding + Materials painting + Direct Labor molding + Direct Labor painting = $470 + $332 + $290 + $680 = $1772 $1772 + Total overhead cost = $1772 + $2136 = $3908 3) continued… If job contained 50 units: Unit Product Cost = $3908 = $78.16 per unit 50 4) Underapplied/Overapplied overhead in each department = Actual total manufacturing overhead cost – Total manufacturing overhead applied Molding: $570,000-$602,000 = $32,000 overapplied Painting: $750,000 - $735,000 = $15,000 underapplied...
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