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Course Content / Chapters 3/4- HW and Pre Class Quiz / Ch. 3/4- Graded Homework B Ch. 3/4- Graded Homework Question 5 Correct Mark 8.33 out of 8.33 " Flag question Calculate and Use Overhead Rate During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data: Direct material (16,000 Ib.) $ 80,000 Direct labor (@ $10/hr.) 200,000 Indirect material 12,000 Indirect labor 22,000 Sales commissions 34,000 Factory administration 16,000 Non factory administrative expenses 20,000 Other manufacturing overhead* 80,000 *Provides for operating 40,000 machine hours. a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours. Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to the nearest one decimal place percentage, when applicable (example: 76.4%). (VEDTTIETadVTg])]:4 Application base overhead rate Direct labor hours ' $ 6.5 v Direct labor costs 65% v Machine hours $ 325 v b. For each item in requirement a, determine the proper application of manufacturing overhead to Job 63, to which 16 direct labor hours, $150 of direct labor cost, and 40 machine hours have been charged. Round answers to two decimal places, when applicable. Application base Overhead applied to Job 63 Direct labor hours $ 104 v Direct labor costs ' $ 975 v Machine hours $ 130 v Solution
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Related Questions
Allocating Service Department Costs: Allocation Basis Alternatives
Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1.
Estimated directed overhead costs per month are as follows:
P1 $450,000
P2 750,000
$1 273,000
Other data follow:
Numbers of employees
Production capacity (units)
Space occupied (square feet)
Five-year average of $1's service output used
P1
P2
150
50
100,000 60,000
5,000 15,000
65% 35%
For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments.
1. Based on number of employees
$
P1
P2
$
2. Production capacity in units
3. Space occupied
4.
Five-year average of $1 service used
627,450✔
845,550✔
5. Estimated direct overhead costs
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TB MC Qu. 04-97 (Algo) Kay Company budgets overhead...
Kay Company budgets overhead cost of $3,645,000 for the next year. The company uses direct labor hours as its overhead allocation base. If
hours are planned for the next year, how much overhead would be assigned to a product requiring 4 direct labor hours?
Multiple Choice
$45.00
$35.00
$180.00
$140.00
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services
SQU Libraries
SQU Portal Attendance English (en)
ial Accounting || fall20
urses / ACCT2121_yasserg_fal|20 / Midterm Exam One_FALL2020 / Ex
Company XYZ uses direct labor hours to allocate its manufacturing
overhead. The company estimates that total direct labor hours to
be operated next year are 250,000 hours. The estimated variable
overhead is OMR13 per hour and the estimated fixed overhead
costs are OMR750,000. Calculate the predetermined overhead rate.
Select one:
Oa. None of the answers given
b. OMR3.00
Oc. OMRO.06
O d. OMR16.00
Oe. OMR15.00
Company XYZ produces computer laptops. During luly 2019 the
7019198page=2= ny produced 2.000 leptops The company ncurred
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es
D
♪
Mc
Graw
Classes N Netflix
Activity
Assembly
Product design
Electricity
Setup
Total
Craftmore Machining reports the following budgeted overhead cost and related data for this year.
Budgeted Cost
$ 477,750
73,500
24,500
61,250
$ 637,000
Activity Cost Driver
Direct labor hours (DLH)
Engineering hours (EH)
Machine hours (MH)
Setups
Required 1
25
Required 2
Dashboard
Activity Cost Driver
Direct labor hours (DLH)
Engineering hours (EH)
Machine hours (MH)
Setups
Required:
1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.
2. Job 31 used 320 direct labor hours and Job 42 used 560 direct labor hours. Allocate overhead cost to each job using the single
plantwide overhead rate from part 1.
3. Compute an activity rate for each activity using activity-based costing.
4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing.
80
Job 31
Activity Usage
Required 3
320
35
60
5
Complete this question by…
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Test yourself
ABC Company is producing
three products, A, B and C in Direct labor hours
their unit.
A
C
10,000
15,000
25,000
Number of orders
15
25
10
placed
During the year 2019,the
total overhead expenses
Machine set up hours
150
300
50
are;
Requirement
1. Calculated pre-determined overhead rate if overhead is
applied based on the direct labor hours
Procurement cost RO200,000
Machine set up cost RO100,000
2. Compute overhead rates using activity based costing.
3. Determine the difference in the amount of overhead
allocated to each product between the two methods.
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x Midterm Exam
https://elearn.squ.edu.om/mod/quiz/attempt.php?attempt=17
MIC)
SQU LIBRARIES -
SQU PORTAL ATTEN
E-LEARNING SERVICES -
Time left 1:49:14
Manufacturing overhead was estimated to be OMR 400,000 for the year
along with estimated 20,000 direct labor hours. Actual manufacturing
overhead was OMR 415,000, and actual labor hours were 21,000. The
amount credited to the Manufacturing Overhead account would be:
O a.
OMR 415,000.
b. OMR 435,750.
O c.
None of the given answer is correct
Od. OMR 420,000.
e. OMR 400,000.
In a job-order costing system, manufacturing overhead applied is recorded
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Current Attempt in Progress
Splish College provides its own housekeeping services. The College director would like to outsource this service and has found a
company that will provide the service for $49 per hour. The following information has been collected about the cost per hour to the
college for performing its own housekeeping services
Cost per hour of service:
Cleaning supplies
$3
Direct labour costs
$27
Variable overhead
$1
Total hours of housekeeping services per year
3,040
Total fixed overhead
$55,080
(a)
Your answer is partially correct
Determine whether Splish College should outsource housekeeping, assuming that 50% of fixed costs can be eliminated if the
service is outsourced. (If an amount reduces the net income then enter with a negative sign preceding the number, eg-15,000 or
parenthesis, eg (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving
this problem.)
amber of hours:
040
In-house
eaning supplies…
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Torio.cam/secured#lockdown
Manufacturing overhead was estimated to be $489,600 for the year along with 20,400 direct lebor hours. Actual manufacturing overhead was
$470,220, and actual labor hours were 21,800. The predetermined manufacturing overhead rate per direct labor hour would be
nabled: Exam 1(Ch 1-4)0
Multiple Choice
$0.07.
$23.05
$24.00.
$22.75
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Unity University
Final Exam for Management And Financial Accounting
Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs:
Direct material ______$5/kg
Direct labor_________$10/hour
Total Manufacturing overhead __________________$30000
The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost).
Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why.
Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the…
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Required Information
Use the following Informatlon to answer questlons. (Static)
[The following information apples to the questions displayed below)
Information on Kwon Manufacturing's activitles for Its first month of operatlons follows:
6. Purchased $100,000 of raw matertals on credit.
b. Materials requisitions show the following materials used for the month.
Job 201
Job 202
Total direct materials
Indirect materials
$ 48,200
23,600
71,800
8,620
S se,420
Total materials used
c. Time tickets show the following labor used for the month.
ces
Job 201
Job 202
Total direct labor
Indirect labor
$39, 200
12,600
51,800
24,200
$ 76,000
Total labor used
d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost
e. Transferred Job 201 to Finished Goods Inventory
1. Sold Job 201 for $163,760 on credit.
g. Incurred the following actual other overhead costs for the month
Depreciation of factory equipnent
Rent on factory building (payable)…
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Unity University
Final Exam for Management And Financial Accounting
Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs:
Direct material ______$5/kg
Direct labor_________$10/hour
Total Manufacturing overhead __________________$30000
The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost).
Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why.
Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the…
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Current Attempt in Progress
A company expected its annual overhead costs to be $692920 and machine hours to equal 101900 hours. Actual overhead was
$744100, and actual machine hours totalled 97400 hours. How much is the company's predetermined overhead rate to the nearest
cent, assuming overhead is applied based on machine hours?
O $7.30
O $6.80
O $7.64
O $7.11
e Textbook and Media
Save for Later
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Task 2: CLO4
OBJECTIVE: To enable learners to identify the relevant costs and benefits from costs and revenue
information available in the financial database to aid decision making on time.
REQUIREMENT: Short term decision making
Question
Selma Corporation uses Part PB7 in one of its products. The company's Accounting Department reports the
following costs to produce 7,000 units of the PB7 that are needed every year.
$ per unit
Direct materials
7.00
Direct labour
6.00
Variable overhead
5.60
Supervisor's salary
Depreciation of special equipment
Allocated general overhead
4.70
1.50
5.40
An outside supplier has offered to make the part and sell it to the company for $28.30 each. If this offer is
accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The
special equipment used to make the part was purchased many years ago and has no salvage value or other
use. The allocated general overhead represents fixed costs of the entire company. If…
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Final Exam (Fall 2020)
Question 23 of 50
View Policies
Current Attempt in Progress
Oriole Co. manufactures baseball bats. The company's total overhead consists of assembly costs and inspection costs. Th
data is available:
Cost Pool
Wood
Aluminum
Total Cost
Assembly
500 machine hrs.
500 machine hrs.
$48000
Inspections
450 inspections
150 inspections
73800
2100 labor hrs.
1900 labor hrs.
Total overhead assigned to wood bats assuming a single overhead rate and using activity-based costing, respectively, are
O $63945 and $79350.
O $63945 and $57855.
O $57855 and $79350.
O $57855 and $42450.
Save for Later
Attempts: 0 of 1 used
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MacBook Air
esc
888
F1
F2
F3
F4
F5
F6
F7
F8
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2
4
6.
8.
# 3
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Question Content Area
Thomlin Company forecasts that total factory overhead for the current year will be $14,529,000 with 167,000 total machine hours. Year to date, the actual overhead is $8,001,000, and the actual machine hours are 88,900 hours. If Thomlin Company uses a predetermined factory overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
a. $234,300 underapplied
b. $234,300 overapplied
c. $266,700 overapplied
d. $266,700 underapplied
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Current Attempt in Progress
The controller of Oriole Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance
costs.
Month
January
February
March
April
May
June
Total
Maintenance Costs
$2,860
3,160
3,760
4,660
3,360
5,260
Total
Machine Hours
320
370
520
670
520
720
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Exercise #1
The following information is estimated by Blue Sea Ltd’s accountant for the upcoming financial year:
Sales revenue
3,480,000
Machine hours
54,000
Direct labour hours
81,000
Direct labour rate
$22.00
Manufacturing overhead
1,326,000
Required:
Calculate the predetermined overhead rates assuming that the cost driver is:
Direct labour hours
Direct labour costs
Machine hours
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PROBLEMS
Instructions: Supply the answer supported by computations in good form using your
worksleet.
000 0A
Problem 1-1. Bayo Dress Shop makes evening dresses. The following information
has been gathered from the company records of 2019, the first year of company
operations. Work in Process Inventory at the end of the year was P100,000.
008 Raw materials purchased on account, of which only P2,350,000
75% were paid during the year.
00 Raw materials issued to production, of which 25% is
indirect materials
1,940,000
Accrued factory payroll (80% is direct labor)
Depreciation of sewing and computer equipment
Utilities paid
Factory insurance expired
Factory rent including P50,000 deposit usqmo MM 960,000o
1,350,000
80,000
320,000
17,500
no bro 000,01 to 1ey
Bayo Dress Shop applies actual overhead to production. es[o 00 00aw
bias i yunst no 000,0809 26w yosval
0e srut no 00,
elsisir
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Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June:
Service Departments
Maintenance
Utilities
Overhead costs incurred
$ 162,000
$ 684,000
Service provided to departments
Maintenance
—
5%
Utilities
10%
—
Producing—A
20
40
Producing—B
70
55
Totals
100%
100%
Required:
What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method?
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View Policies
Current Attempt in Progress
The following T-accounts record the operations of Bonita Co.:
Beginning Balance
Ending Balance
Beginning Balance
Direct Material
Direct Labor
Overhead
Ending Balance
Beginning Balance
COGM
Ending Balance
Direct Materials
29,000
17,000
?
Work in Process
37,000
165,000
28,000
44,000
?
Finished Goods
15,000
Direct materials purchased
?
?
Costs of goods manufactured
244,000
(a) Calculate the amount of direct materials purchased during the period.
644,000 COGS
$
?
(b) Calculate the cost of goods manufactured during the period.
LA
$
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Random Inc.
Cost data for the last 3 years
Overhead Costs Units Produced
January-17
February-17
$78,000
Use regression and show the equation used for Random to separate overhead into fixed and variable components.
How much of the change in costs will this equation predict?
5,679
$91,000
$100,000
6,751
7,539
March-17
April-17
Мay-17
June-17
$78,000
$89,000
5,335
What is the variable cost per unit for overhead? Round to the nearest cent
6,480
$93,000
$87,000
$94,000
June-17
7,630
What is the fixed overhead cost per month? Round to the nearest dollar
July-17
August-17
September-17
October-17
6,331
7 998
7,998
5 043
5,943
Random analyzes their other costs and finds the following (in addition to the overhead costs above):
Direct Mat
$81,000
$85,000
$104,500
$104,000
Each unit of inventory uses 2 gallons of materials and each gallon costs $3
On average a worker can produce 16 units of product in an 8 hour shift and gets paid $180 for that shift
Each month Random spends $26,500 on selling and…
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Show Me How
Question Content Area
Income Statements under Absorption Costing and Variable Costing
Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July:
Sales (8,000 units)
$1,280,000
Production costs (10,000 units):
Direct materials
$592,000
Direct labor
284,000
Variable factory overhead
142,000
Fixed factory overhead
95,000
1,113,000
Selling and administrative expenses:
Variable selling and administrative expenses
$172,500
Fixed selling and administrative expenses
66,800
239,300
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Question No.8
King manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are as follows.
Maintenance Rs.70,000
Material Handling 30,000
Set-ups 25,000
Inspection 50,000
Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct labor hours, 50,000 direct labor hour are budgeted for next year?
The company has been asked to submit a bid for a proposed job. The plant manager feels that obtaining this job would result in new business in future years. Usually, bids are based upon full manufacturing cost plus 30 percent.
Estimates for the proposed job are as follows:
Direct material Rs.2,500
Direct labor (750 hours) Rs.3,750
Number of machine hours 300
Number of material moves 8…
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Name:
Program-Year-Section:
Exercise I-Set A
To
Date:
Professor:
Score:
3A Corporation makes different types of hubcaps for cars. The company
accumulates volumes of metal edges as scrap. At least once a month, the scrap
metal is sold to a local manufacturer for further processing. This month's scrap
sales on account total P15,000.00. The company is using normal cost system.
Required: Prepare the appropriate journal entry to record the sale of the scrap for
each of the following alternatives:
Tok
1. Scrap sale is viewed as additional revenue
2. Scrap sale is viewed as reduction of cost of goods sold
3. When scrap materials are traceable as indirect materials
4. When scrap materials are traceable as direct materials
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Cost per Unit
Direct materials.
Direct labor
Shakti Company budgets overhead cost of $108,000 for the year. The company reports the following for its standard
and deluxe models.
Standard
$ 14
20
Deluxe
$ 25
29
Required 1 Required 2
Saved
Complete this question by entering your answers in the tabs below.
1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 7,200 direct
labor hours.
2. The standard model uses 2 direct labor hours per unit and the deluxe model uses 3 direct labor hours per unit.
Compute overhead cost per unit for each model.
3. Compute the total product cost per unit for both models.
Required 3
>
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