value 064 points Fairfield company applies manufacturing ove

value: 0.64 points Fairfield company applies manufacturing overhead to products at a predetermined rate of $52 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here Direct materials Indirect materials Hourly labor wages Used on Jobs 101 and 102 Used on multiple jobs 750 hours $32 per hour 200 hours for Job 101 300 hours for Job 102 250 hours for Job 103- Total Cost 91,000 31.000 S 6,400 9,600 8,000 24,000 4,200 8,200 2,700 9,200 7,700 Other selling, general, and administrative costs (office rent, insurance, depreciation, etc) 6,200 Factory supervision Production engineer Factory janitorial work Selling, general, and administrative salaries Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.) 1. Post the preceding information to Fairfield Company\'s Manufacturing Overhead T-account Manufacturing Overhead Balance 2. Compute over-or underapplied manufacturing overhead.

Solution

Manufacturing Overheads Account Raw material Inventory 31,000 Work in process Inventory 39000 Factory wages 15,100 (750 hours @52) (4200+8200+2700) Accumulated dep and other Accounts 7700 Balance 14800 Under-applied Manufacturing Overheads: Actual Manufacturing OH incurred: Indirect material 31000 Factory supervision 4200 Production engineer 8,200 Factory Janotorial work 2,700 Other Mmanufacturing Oh 7,700 Actual Manufacturing OH incurred: 53800 Actual Manufacturing OH applied 39000 Under-applied Manufacturing Overheads: 14800