Reference no: EM132460201
Problem - Job Costing And Overhead Application
Uniflex applies overhead on the basis of direct labor cost. In December 20X4, the company's cost accountant made the following predictions for 20X5 operations: direct labor cost, $620,000; factory overhead, $961,000.
Uniflex worked on job Nos. 241 and 242 in January. The costs incurred and production status of these two jobs appear in the table that follows.
|
Job No. 241
|
Job No. 242
|
Direct materials
|
$29,000
|
$47,000
|
Direct labor
|
$18,000
|
$28,500
|
Production status
|
In process
|
In process
|
By the end of 20X5, actual direct labor cost amounted to $612,500, and factory overhead incurred totaled $907,500. There was no work in process on January 1, 20X5.
Compute the following:
a. Uniflex's overhead application rate.
b. The balance of the Work in Process account on January 31, 20X5.
c. The amount of over- or underapplied overhead for 20X5. Be sure to indicate whether overhead was overapplied or underapplied.
Attachment:- Assignment File.rar