Question 1 - Ferdi Company uses a predetermined overhead rate of $23.40 per directed labor-hour. this predetermined rate was based on 11,000 estimated direct labor-hours and $ 257,400 of estimated total manufacturing overhead the company incurred actual total manufacturing overhead costs of $249,000 and 10,800 total direct labor hours during the period.
Required - Determine the amount of manufacturing overhead that would have been applied to units of product during the period.
Question 2 - Snort Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows changes of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W which is still in process at year-end, show changes of $2,500 for direct materials and $4,000 for direct labor
Required -
Should any overhead cost be added to job W at year-end? If so, how much? Explain.
Please write down the detailed calculation. (Showing those numbers come from).