1. Review the data in the Predetermined Factory Overhead Rate panel, and compute the predetermined factory overhead rate for POGP Company. Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200.00 Estimated total Office Manager/Knitting Supervisor wages $36,000.00 Estimated office utilities $3,000.00 Estimated factory utilities $4,800.00 Estimated factory rent $18,000.00 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent.
1. Review the data in the Predetermined Factory Overhead Rate panel, and compute the predetermined factory overhead rate for POGP Company. Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200.00 Estimated total Office Manager/Knitting Supervisor wages $36,000.00 Estimated office utilities $3,000.00 Estimated factory utilities $4,800.00 Estimated factory rent $18,000.00 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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1. | Review the data in the Predetermined Factory |
Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH).
Estimated Selected Amounts for the Year
|
|
Estimated |
$1,200.00 |
Estimated total Office Manager/Knitting Supervisor wages | $36,000.00 |
Estimated office utilities | $3,000.00 |
Estimated factory utilities | $4,800.00 |
Estimated factory rent | $18,000.00 |
Activity Base Data
|
|
Estimated number of DLH for the year | 5,000 |
Estimated number of MH for the year | 3,500 |
Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent.
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