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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Fairfield company applies manufacturing overhead to products at a predetermined rate of $50 per direct labor hour. Its manufacturing costs for the most recent period are summarized here:
| Item | Description | Total Cost | |||
| Direct materials | Used on Jobs 101 and 102 | $ | 60,000 | ||
| Indirect materials | Used on multiple jobs | 30,000 | |||
| Hourly labor wages | 750 hours @ $30 per hour | ||||
| 200 hours for Job 101 = | $ | 6,000 | |||
| 300 hours for Job 102 = | 9,000 | ||||
| 250 hours for Job 103 = | 7,500 | 22,500 | |||
| Factory supervision | 4,000 | ||||
| Production engineer | 8,000 | ||||
| Factory janitorial work | 2,500 | ||||
| Selling, general, and administrative salaries | 9,000 | ||||
| Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.) | 7,500 | ||||
| Other selling, general, and administrative costs (office rent, insurance, depreciation, etc.) | 6,000 | ||||
| 1. | Post the preceding information to Fairfield Company’s Manufacturing Overhead T-account. |
2. Compute over- or underapplied manufacturing overhead.
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