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19.10.2021 •
Business
Vernon Company and Walton Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year: Vernon Company Walton Company Actual direct labor cost $ 154,000 $ 179,000 Estimated direct labor cost 159,000 108,000 Actual manufacturing overhead cost 55,800 91,900 Estimated manufacturing overhead cost 73,140 91,800 Required Compute the predetermined overhead rate for each company. Determine the amount of overhead cost that would be applied to Work in Process Inventory for each company. Compute the amount of overapplied or underapplied manufacturing overhead cost for each company.
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