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Exercise 3 5

The document provides information about a company, Luthan Company, that uses a predetermined overhead rate of $23.40 per direct labor hour. The rate was based on an estimated 11,000 direct labor hours and $257,400 of estimated overhead. Actual overhead costs for the period were $249,000 with 10,800 direct labor hours. The required task is to determine the amount of overhead applied using the actual hours and predetermined rate.

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2K views

Exercise 3 5

The document provides information about a company, Luthan Company, that uses a predetermined overhead rate of $23.40 per direct labor hour. The rate was based on an estimated 11,000 direct labor hours and $257,400 of estimated overhead. Actual overhead costs for the period were $249,000 with 10,800 direct labor hours. The required task is to determine the amount of overhead applied using the actual hours and predetermined rate.

Uploaded by

ismail88
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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EXERCISE 3-5 Apply Overhead [L05]

Luthan Company uses a predetermined overhead rate of $23.40 per direct labor-
hours.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 Predetermined Amount of the allocation


a particular job = overhead rate 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 Predetermined Amount of the allocation


a particular job = overhead rate X base incurred by the job.

= $18.20 x 11500
= $209,300

Actual cost = $215,000

Underapplied = $5700

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

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