Maggie Manufacturing Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied overhead is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company: Required:
Determine the following:
a. The August 1 balance of Raw Materials.
b. The amount of manufacturing overhead applied to jobs in August.
c. The Cost of Goods Manufactured for August.
d. The overapplied or underapplied manufacturing overhead for the month. Label this amount appropriately.

Question

Maggie Manufacturing Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied overhead is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company:  Required:
Determine the following:
a. The August 1 balance of Raw Materials.
b. The amount of manufacturing overhead applied to jobs in August.
c. The Cost of Goods Manufactured for August.
d. The overapplied or underapplied manufacturing overhead for the month. Label this amount appropriately.

Quizplus · Accepted Answer

The Answer of Maggie Manufacturing Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied overhead is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company:  Required:
Determine the following:
a. The August 1 balance of Raw Materials.
b. The amount of manufacturing overhead applied to jobs in August.
c. The Cost of Goods Manufactured for August.
d. The overapplied or underapplied manufacturing overhead for the month. Label this amount appropriately.

Maggie Manufacturing Company Applies Manufacturing Overhead to Jobs Using a Predetermined