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Question - Southern Rim Parts estimates its manufacturing overhead to be $385,000 and its direct labor costs to be $1,100,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $69,000 for Job 301, $94,000 for Job 302, and $195,000 for Job 303. For the year, actual manufacturing overhead was $379,000 and total direct labor cost was $830,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates.
Required -
a. How much overhead was assigned to each of the three jobs, 301, 302, and 303?
b. What was the over- or underapplied manufacturing overhead for year 1?
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