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MURIEL6715
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$5.00 ACCOUNTIG HELP

• From Mathematics: General-Mathematics
• Closed, but you can still post tutorials
• Due on Dec. 07, 2008
• Asked on Dec. 06, 2008 at 11:12:30AM

Q:

Manufacturing overhead-over/under applied. LampArt Co. Makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hour’s basis. During the first month of the company’s fiscal year, $173,250 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of $15 per direct labor hour.

Required:

a. Calculate the number of hours of direct labor used during November.
b. Actual manufacturing overhead costs incurred during November totaled $166,425. Calculate the amount of over-or under applied overhead for November.
c. Identify two possible explanations for over- or under applied overhead.
d. Explain the accounting appropriate for the over- or under applied overhead at the end of November.

 

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