Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $120,000 for the year; direct labor was estimated to total $150,000. The following transactions have occurred during the year. a. Calculate the predetermined overhead rate.
b. Calculate cost of goods manufactured.
c. Calculate the over or under-applied overhead.
d. Calculate adjusted cost of goods sold.

Question

Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $120,000 for the year; direct labor was estimated to total $150,000.  The following transactions have occurred during the year.  a. Calculate the predetermined overhead rate.
b. Calculate cost of goods manufactured.
c. Calculate the over or under-applied overhead.
d. Calculate adjusted cost of goods sold.

Quizplus · Accepted Answer

The Answer of Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $120,000 for the year; direct labor was estimated to total $150,000.  The following transactions have occurred during the year.  a. Calculate the predetermined overhead rate.
b. Calculate cost of goods manufactured.
c. Calculate the over or under-applied overhead.
d. Calculate adjusted cost of goods sold.

Ecola Company Uses a Job Order Costing System