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