| Westan Corporation uses a predetermined overhead rate of $23.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $277,200 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours. |
| The company incurred actual total manufacturing overhead costs of $266,000 and 12,600 total direct labor-hours during the period. Don't use plagiarized sources. Get Your Custom Essay on acc640 chapter 4 homework 498454 For $10/Page 0nly |
| Kirkaid Company recorded the following transactions for the just completed month: |
| a. | $84,000 in raw materials were requisitioned for use in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. |
| b. | Total labor wages of $108,000 were incurred. Of this amount, $105,000 was for direct labor and the remainder was for indirect labor. |
| c. | Additional actual manufacturing overhead costs of $197,000 were incurred. |
| d. | A total of $218,000 in manufacturing overhead was applied to jobs. |
| Required: |
| Determine the underapplied or overapplied overhead for the month. |
| Required: | |||||||
| Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
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