Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead. Work in Process Inventory Beginning WIP 17,600 Direct Materials 52,800 Direct Labor ? Applied Overhead ? To Finished Goods ? Ending WIP 36,080 Finished Goods Inventory Beginning FG 5,200 201,520 Ending FG
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Ответ:
$79,200
Explanation:
The computation of the amount of applied overhead is shown below:
Let us assume
Direct labor cost = Y
Applied overhead will be = 0.9 Y(90% of Y )
As we know that
Beginning Work in process + Direct material + Direct labor + Applied overhead = Transfer to finished goods + Ending Work in process
$17,600 + $52,800 + Y + 0.9 Y = $201,520 + $36,080
$70,400 + 1.9 Y = $237,600
1.9 Y = $237,600 - $70,400
1.9 Y = $167,200
Y = $167,200 ÷ 1.9
Y = $88,000
So, Direct labor cost is $ 88,000.
Therefore the Amount of applied overhead will be
= $88,000 × 90%
= $79,200
Ответ: