Yarra Fabrication estimates that its manufacturing overhead will be $2,252,800 in year 1. It further...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Yarra Fabrication estimates that its manufacturing overhead will be $2,252,800 in year 1. It further estimates that direct material costs will amount to $1,408,000. During July, Yarra worked on four jobs with actual direct materials costs of $62,000 for Job 0701, $48,000 for Job 0702, $65,000 for Job 0703, and $39,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,410,000. Actual direct materials costs were $1,560,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates.
Required:
a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704?
b. What was the over- or underapplied manufacturing overhead for year 1?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
