RECOMMENDED!!Factory Overhead, Actual Costs and Normal Costs

  

Factory Overhead, Actual Costs and Normal CostsJo Company actually incurred $400,000 of factory overhead
during 2011. On January 1, 2011, Jo expected to incur $500,000 in factory
overhead and to work 80,000 direct labor hours during the year. 100,000 hours
were actually worked during 2011. Jo’s normal cost of goods sold was
$1,000,000.Was factory overhead over applied or under applied during
the year, and why?What was the amount of over or under applied overhead?What was Jo’s actual cost of goods sold?
Why is normal cost of goods sold different from actual cost
of goods sold?

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