Reference no: EM132814506

Question - Standford Enterprises uses job-order costing. The allocation base for overhead is direct labor hours.

Data for the year just ended:

Estimated total manufacturing overhead cost $275000

Estimated total direct labor hours 25,000

Actual total direct labor hours 27,760

Actual costs for the year:

Purchase of raw materials (all direct) $375,000

Direct labor cost $536,300

Manufacturing overhead costs $302,750

Inventories: Beginning Ending

Raw materials (all direct) $15,000 $11,375

Work in process $27,875 $22,350

Finished goods $34,600 $26,450

Use the data to answer the following:

a) Compute applied overhead and determine the amount of underapplied or overapplied overhead.

b) Prepare schedule of cost of goods manufactured.