2023 Tyler Tooling Company uses a job order costing system with overhead applied to products on the basis of machine | Assignments Online

Tyler Tooling Company uses a job order costing system with overhead applied to products on the basis of machine hours.  For the upcoming year, the company estimated its total manufacturing overhead cost at $241,410 and total machine hours at 61,900. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job:

 

 

                                 Job 101        Job 102       Job 103           Total

  Direct materials cost$11,700            $7,500       $5,000    $24,200

  Direct labor cost       $17,300             $5,100       $4,300    $26,700

  Machine hours      1,300 hours      2,200 hours    1,000 hours  4,500 hours

 

 

  Job 101  was completed and sold for $51,800.

  Job 102  was completed but not sold.

  Job 103  is still in process.

 

Actual overhead costs recorded during the first month of operations totaled $18,150.

 

 

Requirement 1:  Calculate the predetermined overhead rate. 

 

Requirement 2:  Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. 

 

Requirement 3:  Compute the balance in the Work in Process Inventory account at the end of the first month. 

  

Requirement 4:  How much gross profit would the company report during the first month of operations before making an adjustment for over- or underapplied manufacturing overhead? 

 

Requirement 5:  Determine the balance in the Manufacturing Overhead Account at the end of the first month. Is it over- or underapplied?