Highlighted is wrong Verizox Company uses a job order cost s

Highlighted is wrong.

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $186,850. Estimated direct labor cost was $442,150 for 18,500 hours Actual costs for the most recent month are summarized here Item Description Direct labor (1,850 hours) Indirect costs Total Cost $44,216 Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries Selling expense 2,530 3,420 3,400 4,790 5,750 1,270 1,820 4,260 5,490 Required 1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined Overhead Rate $ 10.101 Per DL Hour 2. Calculate the amount of applied manufacturing overhead plied Manufacturing Overhead 18,685 3. Calculate actual manufacturing overhead costs tual Manufacturing Overhead Costs $ 22,280 4. Compute over- or underapplied overhead. (Input the amount as positive value.) OverheadUnderapplied by $ 3,595

Solution

1. Predetermine overhead rate :

Predetermine overhead rate = 186850/18500 = 10.10 per DLH

2. Applied manufacturing overhead = 10.10*1850 = 18685

3. Actual manufacturing overhead :

4. Compute over or under applied overhead :

Over (under) Applied overhead = Applied overhead-actual overhead

= 18685-22980

Under applied overhead = 4295

Indirect labour	2530
Indirect material	3420
Factory rent	3400
Factory supervision	4790
Factory depreciation	5750
Factory Janitorial work	1270
Factory insurance	1820
Actual manufacturing overhead cost	22980