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Question - The following relate to Newburg company total actual manufacturing overhead cost incurred (including 15000 of indirect materials) 353000 purchases of raw materials (direct/indirect) 250000 direct labor costs 135000
Inventories:
raw materials, beg 10000
raw materials, ending 15,000
work in process, beg 20,000
work in process, end 35,000
The company uses a predetermined overhead rate to apply manufacturing overhead costs to production. The predetermined overhead rate for the year was $15 per machine hour. A total of 23,000 machine hours were recorded for the year.
a. Compute the amount of underapplied or overapplied manufacturing overhead cost for the year.
b. Prepare a schedule of costs of good manufactured for the year.
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