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Southern Rim estimates its manufacturing overhead to be $495,000 and its direct labor costs to be $900.000. the first 3 jobs that southern rim worked on had actual direct labor costs of $20,000 for job 301, $30,000 for job 302, and $40,000 for job 303. For the year actual manufacturing overhead was $479,000 and total direct labor cost was $850,000. manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates.
Problem 1: Show how to calculate actual manufacturing overhead costs to get the over applied or under applied manufacturing overhead?
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