70.2K
Verified Solution
Link Copied!
Augusta Company uses a job order costing system . They have the following cost data for XYZ Department :
Incurred By Job # 300 : Direct Materials : $1,000 Direct Labor : $7,000
Incurred By Job #301 : Direct Materials : $26,000 Direct Labor : $53,000
Incurred By Job #302 : Direct Materials : $12,000 Direct Labor $9,000
Incurred By Job #303 : Direct Materials : $4,000 Direct Labor : $1,000
Total Direct Material Cost : $43,000 Total Direct Labor Cost : $70,000
Actual Manufacturing Overhead Costs for the current year :
Indirect Materials : $15,000
Indirect Labor : $53,000
Employee Fringe Benefits : $23,000
Depreciation : $12,000
Supervision : $20,000
Total : $123,000
XYZ Department's predetermined overhead rate for the year is based on direct labor cost :
Budgeted Direct Labor Cost : $80,000
Budgeted Overhead : Variable : $98,000 Fixed : $38,000
What is the under-applied or over-applied overhead cost for XYZ Department for the year?
A) 4,000 overapplied B) 11,000 overapplied C) 4.000 underapplied D) 11,000 underapplied E) 5,000 overapplied
Please show help with steps and answer
Answer & Explanation
Solved by verified expert
