Reference no: EM132888983
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished.
September 1, inventories:
Materials$24,000
Work-in-process (All Job X) 53,400
Finished goods 105,600
Materials purchases$157,000
Direct materials requisitioned:
Job X$74,000
Job Y 68,000
Direct labor hours:
Job X 7,000
Job Y 5,500
Labor costs incurred:
Direct labor ($6.00 per hour)$75,000
Indirect labor 24,200
Factory supervisory salaries 11,100
Rental costs:
Factory$9,300
Administrative offices 3,200
Total equipment depreciation costs:
Factory$10,400
Administrative offices 2,800
Indirect materials used$17,800
Problem 1: The underapplied or overapplied overhead for September is:
Multiple Choice
Option 1: $2,350 underapplied.
Option 2: $1,450 underapplied.
Option 3: $950 overapplied.
Option 4: $2,350 overapplied.
Option 5: $950 underapplied.