Manufacturing Overhead question for Managerial Accounting:?

Question

Hamilton Company utilizes job-order costing, applying manufacturing overhead at a predetermined rate of 150% of direct labor costs. Any over- or underapplied manufacturing overhead is closed to the Cost of Goods Sold account at the end of each month. 
As of January 31, Job 101 was the only job in process, with the following costs recorded on its job cost sheet at the beginning of the month: 
- Direct materials: $4,000 
- Direct labor: $2,000 
- Applied manufacturing overhead: $3,000 
During February, Jobs 102, 103, and 104 were initiated. The total direct materials requisitioned for February amounted to $26,000, and direct labor costs incurred for the month were $20,000. The actual manufacturing overhead for February was $32,000. 
At the end of February, the only job still in process was Job 104, which had incurred costs of $2,800 for direct materials and $1,800 for direct labor. 
Given this information, what was the manufacturing overhead for the month of February?

Frederique Wunsch · Accepted Answer

hey man , i’m actually doing cost accounting and for what i understand this is how it goes. hope i’m right
Actuall manufacturing overhead cost  (feb)                                           32,000
Manufacturing overhead cost applied to work
in process during the year:
     Predetermined Overhead rate(direct labor)                           150%
     Actual amount of the Allocation in feb (Direct Labor)          20,000                
Manufacturing overhead applied (february)                                          (30,000)  [150% x 20,000]
underapplied manufacturing overhead                                                   2,000   [ 32000 – 30,000 ] 
the amount of overhead cost applied to work in process for the month is 30,000 and is less than the actuall overhead cost for the month 32,000, so overhead is underapplied. 
hey that’s how u do it but i’m not sure what happens to the 3000 in applied manufacturin overhead at the beginning of the month.
student of the University of the West Indies in Barbados, good luck

Anonymous · Answer

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RE:
Manufacturing Overhead question for Managerial Accounting:?
Hamilton Company uses job-order costing. Manufacturing overhead is applied using a predetermined rate of 150% of direct labor cost. Any over- or underapplied manufacturing overhead is closed to the Cost of Goods Sold account at the end of each month. Additional information is available as…

Anonymous · Answer

Manufacturing overhead was applied at the rate of 150% of direct labor costs.  How do I figure this out?

Anonymous · Answer

https://shorturl.im/XXmlA
They are both MOH, not contra accounts. Accumulated Depreciation and Allowance for Doubtful Accounts are examples of contra accounts, since they reduce the net value of another account.

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Manufacturing Overhead question for Managerial Accounting:?

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