Wyse Corp uses a normal job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Wyse Corp estimated total manufacturing overhead cost at $851,700 and total direct labor hours of 50,100. Wyse Corp started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the year actual manufacturing overhead incurred was $836,600 and 47,800 direct labor hours were used.
| (a) |
Calculate the predetermined overhead rate. (Omit the "$" sign in your response.) |
| (b) |
Calculate how much manufacturing overhead will be applied to production. (Omit the "$" sign in your response.)
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| (c) |
Is overhead over- or underapplied? By how much? (Input the amounts as positive value. Omit the "$" sign in your response.) |
| (d) |
What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?
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