Acc 561 wiley plus week 4 E15-5, E16-3, E17-1
E15-5 Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $353,920 for the year, and machine usage is estimated at 126,400 hours. For the year, $368,283 of overhead costs are incurred and 130,100 hours are used.
(a) Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.)
Manufacturing overhead rate$_________per machine hour
Expected overhead costs = $353,920
Machine hours = 126,400 hrs.
Manufacturing overhead rate = 353,920/ 126,400
= $2.80 per machine hour
(b) What is the amount of under or over-applied overhead at December 31?
Actual machine hours used 130,100 hours
Standard overhead rate $2.80 per mach. hr.
Overhead costs applied (130,000 x 2.80) $364,280
Overhead costs incurred $368,283
Under-applied overhead $(4,003)
(c) Prepare the adjusting entry to assign the under or over-applied overhead for the year to cost of goods sold.
Cost of goods sold 4,003
Manufacturing overhead 4,003
E16-3 The le