Calgary Injection Moulding operates a job-order costing system and applies overhead cost to jobs on...
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Accounting
Calgary Injection Moulding operates a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. In computing an overhead rate for the year, the companys estimates were as follows: manufacturing overhead cost, $248,000, and machine-hours, 40,000. The company has provided the data in the following table:
Beginning
Ending
Raw Materials
$
21,000
$
16,000
Work in Process
$
44,000
$
40,000
Finished Goods
$
68,000
$
60,000
The following actual costs were incurred during the year:
Purchase of raw materials (all direct)
$
133,000
Direct labour
$
80,000
Machine-hours
42,000
Manufacturing overhead costs:
$
264,000
Required:
1-a. Compute the predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
1-b(i) Compute the amount of underapplied or overapplied overhead for the year.
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