Overapplied manufacturing overhead = Manufacturing overhead applied - Actual manufacturing overhead Manufacturing overhead applied = Actual manufacturing overhead + Overapplied manufacturing overhead = $225,000 + $14,500 = $239,500 Manufacturing overhead applied = Predetermined overhead rate × Actual direct labor-hours Actual direct labor-hours = Manufacturing overhead applied ÷ Predetermined overhead rate = $239,500 ÷ $5.00 per direct labor-hour = 47,900 direct labor-hours AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate. Learning Objective: 02-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Topic: Job-Order Costing Topic: Underapplied and Overapplied Overhead 63. Company uses a predetermined overhead rate based on direct to apply manufacturing overhead to jobs. Last year Dowan Company incurred $156,600 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that manufacturing overhead was underapplied by $12,600 for the year. If the predetermined overhead rate is $6.00 per direct labor-hour, how many hours did the company work during the year?
Overapplied manufacturing overhead = Manufacturing overhead applied - Actual manufacturing overhead Manufacturing overhead applied = Actual manufacturing overhead + Overapplied manufacturing overhead = $225,000 + $14,500 = $239,500 Manufacturing overhead applied = Predetermined overhead rate × Actual direct labor-hours Actual direct labor-hours = Manufacturing overhead applied ÷ Predetermined overhead rate = $239,500 ÷ $5.00 per direct labor-hour = 47,900 direct labor-hours AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate. Learning Objective: 02-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Topic: Job-Order Costing Topic: Underapplied and Overapplied Overhead 63. Company uses a predetermined overhead rate based on direct to apply manufacturing overhead to jobs. Last year Dowan Company incurred $156,600 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that manufacturing overhead was underapplied by $12,600 for the year. If the predetermined overhead rate is $6.00 per direct labor-hour, how many hours did the company work during the year?