Chapter 04 Inclass quiz_SOLN

Chapter 04 Inclass quiz_SOLN - B. Assume that at the end...

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Acc 200P Name: ________________________ Lab Section #_________________ Chapter 4 SOLUTION Gant & Gant Inc. is a law firm that uses job-order costing. The company allocates overhead based on direct labor hours. At the beginning of 2013, the company estimated total overhead for the year to be $500,000. They also estimated 25,000 direct labor hours will be worked. In March of 2013, a particular client had 300 direct labor hours allocated to them. A. How much overhead should be applied to this particular client? Answer: _ $6,000 __ OH rate = $500,000/25,000 = $20.00 per DL hour 300 DL hours x $20 = $6,000
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Unformatted text preview: B. Assume that at the end of 2013, actual overhead costs ended up being $480,000 and 30,000 direct labor hours were actually worked during the year. i) How much total overhead was applied during 2013? Answer: _ $600,000 __ Applied overhead (30,000 x $20) 600,000 ii) Based on your answer to the above, by how much was overhead over or under applied during 2013? Be sure to indicate whether it was over or under-applied. Answer: _ $120,000 overapplied Actual overhead $480,000 Applied overhead (30,000 x $20) 600,000 Overlapped $120,000...
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This note was uploaded on 01/11/2011 for the course ACC 200 taught by Professor Buckless during the Winter '08 term at N.C. State.

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