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Wosepka Welding Company Underapplied and Overapplied Overhead

Underapplied and Overapplied Overhead
Wosepka Welding Company applies factory overhead at a rate of $8.50 per direct-labor hour. Selected data for 20X7 operations are (in thousands):
Case 1 Case 2
Direct-labor hours 30 36
Direct-labor cost $220 $245
Indirect-labor cost 32 40
Sales commissions 20 15
Depreciation, manufacturing equipment 22 32
Direct-materials cost 230 250
Factory fuel costs 35 47
Depreciation, finished-goods warehouse 5 17
Cost of goods sold 420 510
All other factory costs 138 204

Compute for both cases
1. Factory overhead applied.
2. Total factory overhead incurred.
3. Amount of underapplied or overapplied factory overhead.

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Underapplied and Overapplied Overhead
Wosepka Welding Company applies factory overhead at a rate of $8.50 per direct-labor hour. Selected data for 20X7 operations are (in thousands):
Case 1 Case 2
Direct-labor hours 30 ...

Solution Summary

This solution is comprised of a detailed explanation to compute factory overhead applied, total factory overhead incurred, and amount of underapplied or overapplied factory overhead.

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