Exercise 3 5

EXERCISE 3-5 Apply Overhead [L05] Luthan Company uses a predetermined overhead rate of $23.40 per direct laborhours.This predetermined rate was based on 11,000 estimed direct labor-hours and $257,400 of estimated total manufacturing overhead. The company incurred actual total manufacturing overhead costs of $249,000 and 10,800 total direct labor-hours during the period. Required; Determine the amount of manufacturing overhead that would have been applied to units of product during the period. Answer: Overhead applied to a particular job =

Predetermined overhead rate

Amount of the allocation X base incurred by the job.

= $23.40 x 10,800 = $252,720

EXERCISE 3-8 Under and Pverapplied [L08] Answer: 1- Overhead applied to a particular job

=

Predetermined overhead rate

= =

$18.20 x 11500 $209,300

Actual cost

=

$215,000

Underapplied

=

$5700

X

Amount of the allocation base incurred by the job.

2- Kos barang meningkat $ 5700 dan untung kasar menurun $ 5700