Manufacturing Overhead question for Managerial Accounting:?

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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 follows:Job 101 was the only job in process at January 31. The job cost sheet for this job contained the following costs at the beginning of the month:Direct materials=4000Direct labor=2000 Applied manufacturing overhead=3000Jobs 102, 103, and 104 were started during February.Direct materials requisitions for February totaled $26,000.Direct labor cost of $20,000 was incurred for February.Actual manufacturing overhead was $32,000 for February. The only job still in process at February 28 was Job 104, with costs of $2,800 for direct materials and $1,800 for direct labor.For the month of February, the manufacturing overhead was:?

Saul Waters · Accepted Answer

hey man , i’m actually doing cost accounting and for what i understand this is how it goes. hope i’m rightActuall manufacturing overhead cost (feb) 32,000Manufacturing overhead cost applied to workin 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

Saul Waters · Answer

This Site Might Help You.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…

Saul Waters · Answer

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

Saul Waters · Answer

https://shorturl.im/XXmlAThey 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.

Ms. Mara Collier

Manufacturing Overhead question for Managerial Accounting:?

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