Dearborn Company's predetermined overhead rate is based on direct labor hours (DLHs). At the beginning of the current year, the company estimated that its manufacturing overhead would total $220,000 during the year. During the year, the company incurred $200,000 in actual manufacturing overhead costs. The ManufacturingOverhead account showed that overhead was underapplied by $8,000 during the year. If the predetermined overhead rate was $40.00 per DLH, how many DLHs were worked during the year? A)5,500 hoursB)5,200 hoursC)5,000 hoursD)4,800 hours 6Vahedi Company manufactures a specialty line of silk-screened ties. The company uses a job-order costing system. During the month, the following costs were incurred on Job 1041: direct materials $54,800 and direct labor $19,200. In addition, selling and shipping costs of $28,000 were incurred on the job. Manufacturing overhead was applied at the rate of $25 per machine-hour (MH) and Job 1041 required 320 MHs. If Job 1041 consisted of 5,000 ties, the cost of goods sold per tie was:
7In a job order cost system, the use of direct materials would be recorded as a debit to:
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- Managerial Accounting, Harrington Company