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34 votes
34 votes
Leelanau applies overhead using a predetermined rate. What amount of overhead was applied to work in process last year

User Alex Paulino
by
3.1k points

1 Answer

18 votes
18 votes

Answer:

$138,500

Step-by-step explanation:

The computation of the overhead applied is shown below:

As we know that

Cost of goods manufactured = Beginning WIP + Total manufacturing costs - Ending WIP

$323,000 = $10,500 + Total manufacturing costs - $19,000

So,

Total manufacturing costs is

= ($323,000 + $19,000 - $10,500)

= $331,500

Now

Total manufacturing costs is

= Direct materials + Direct labor + Overheads

So,

Overheads is

= ($331,500 - $115,000 - $78,000)

= $138,500

User Daath
by
2.3k points