Question: verizox company uses a job order cost system with manufacturing...
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $184,000. Estimated direct labor cost was $425,040 for 18,400 hours.
Actual costs for the most recent month are summarized
|Item Description||Total Cost|
|Direct labor (1,840 hours)||$||42,505|
|Factory janitorial work||1,290|
|General and administrative salaries||4,140|
1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)
2. Calculate the amount of applied manufacturing overhead.
3. Calculate actual manufacturing overhead costs.
4. Compute over- or underapplied overhead. (Input the amount as positive value.)