Question

Yarra Fabrication estimates that its manufacturing overhead will be $2,240,000 in year 1. It further estimates that direct material costs will amount to $1,400,000. During July, Yarra worked on four jobs with actual direct materials costs of $60,000 for Job 0701, $40,000 for Job 0702, $55,000 for Job 0703, and $35,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,400,000. Actual direct materials costs were $1,550,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates.
Required:
a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704?
b. What was the over- or underapplied manufacturing overhead for year 1?

Answer 1

Answer:

The answer is attached.