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Ignatenko Company estimates it will incur $2,400,000 in manufacturing overhead during the coming ...

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Ignatenko Company estimates it will incur $2,400,000 in manufacturing overhead during the coming ...

Ignatenko Company estimates it will incur $2,400,000 in manufacturing overhead during the coming year. Additionally, it is estimated the company will operate at a level requiring 200,000 direct labor hours and 500,000 machine hours. At the end of the year Ignatenko had worked 203,000 direct labor hours, used 450,000 machine hours, and incurred $2,510,000 in manufacturing overhead.

Required:

a.	If Ignatenko Company used direct labor hours as its manufacturing overhead

application
base, how much overhead was applied to jobs during the year?

b.	Using direct labor hours as the application base, was manufacturing overhead under-

or overapplied for the year? By how much?

c.	If Ignatenko Company used machine hours as its manufacturing overhead application

base,
how much overhead was applied to jobs during the year?

d.	Using machine hours as the application base, was manufacturing overhead under-

or overapplied for the year? By how much?

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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