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