1. Business
  2. Accounting
  3. fairfield company applies manufacturing overhead to products at a predetermined...

Question: fairfield company applies manufacturing overhead to products at a predetermined...

Question details

Fairfield company applies manufacturing overhead to products at a predetermined rate of $60 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here: Item Description Total Cost Direct materials Used on Jobs 101 and 102 95,000 Indirect materials Used on multiple jobs 35,000 Hourly labor wages 750 hours @ $40 per hour 200 hours for Job 101 = $ 8,000 300 hours for Job 102 = 12,000 250 hours for Job 103 = 10,000 30,000 Factory supervision 5,000 Production engineer 9,000 Factory janitorial work 3,500 Selling, general, and administrative salaries 10,000 Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.) 8,500 Other selling, general, and administrative costs (office rent, insurance, depreciation, etc.) 7,000 1. Post the preceding information to Fairfield Company’s Manufacturing Overhead T-account. 2. Compute over- or underapplied manufacturing overhead.

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution