8. Zubair Manufacturing Company uses a job order cost system in each of its two manufacturingdepartments. Manufacturing overhead is applied to jobs on the basis of direct labor cost inDepartment A and direct labor hours in Department B. In establishing the predeterminedoverhead rates for 2020, the following estimates were made for the year.DepartmentABManufacturing overhead450,000400,000Direct labor costs300,00050,000Direct labor hours25,00020,000Machine hours50,00060,000DepartmentA$63,000$55,000Direct materials used$70,000Direct labor costs$60,000Manufacturing overheadincurredDirect labor hours$86,000$37,5002,0001,250Machine hours4,0005,250Business Administration Program Final Assessment Semester Fall 2020PageDuring January, the job cost sheets showed the following costs and production dataInstructions:(a) Compute the predetermined overhead rate for each department.(b) Compute the total manufacturing costs assigned to jobs in January in each department.(c) Compute the under-or-over applied overhead for each department at January 31.

Name: 8. Zubair Manufacturing Company uses a job order cost system in each
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 8. Zubair Manufacturing Company uses a job order cost system in each of its two manufacturingdepartments. Manufacturing overhead is applied to jobs on the basis of direct labor cost inDepartment A and direct labor hours in Department B. In establish

Job order costing:-this system helps in calculating the cost of the product and ascertaining the…

Business

Accounting

8. Zubair Manufacturing Company uses a job order cost system in each of its two manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A and direct labor hours in Department B. In establishing the predetermined overhead rates for 2020, the following estimates were made for the year. Department A B Manufacturing overhead 450,000 400,000 Direct labor costs 300,000 50,000 Direct labor hours 25,000 20,000 Machine hours 50,000 60,000 Department A B Direct materials used $70,000 $63,000 Direct labor costs $60,000 $55,000 Manufacturing overhead incurred $86,000 $37,500 Direct labor hours 2,000 1,250 Machine hours 4,000 5,250 Business Administration Program Final Assessment Semester Fall 2020 Page During January, the job cost sheets showed the following costs and production data Instructions: (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing costs assigned to jobs in January in each department. (c) Compute the under-or-over applied overhead for each department at January 31.

8. Zubair Manufacturing Company uses a job order cost system in each of its two manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A and direct labor hours in Department B. In establishing the predetermined overhead rates for 2020, the following estimates were made for the year. Department A B Manufacturing overhead 450,000 400,000 Direct labor costs 300,000 50,000 Direct labor hours 25,000 20,000 Machine hours 50,000 60,000 Department A B Direct materials used $70,000 $63,000 Direct labor costs $60,000 $55,000 Manufacturing overhead incurred $86,000 $37,500 Direct labor hours 2,000 1,250 Machine hours 4,000 5,250 Business Administration Program Final Assessment Semester Fall 2020 Page During January, the job cost sheets showed the following costs and production data Instructions: (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing costs assigned to jobs in January in each department. (c) Compute the under-or-over applied overhead for each department at January 31.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...

See similar textbooks

Similar questions

A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?
When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000 for the year. Direct labor hours are estimated to be 80,000. For Bergan Company, (A) determine the predetermined factory overhead rate using direct labor hours as the activity base, (B) determine the amount of factory overhead applied to Jobs 200 and 305 in May using the data on direct labor hours from BE 16-2, and (C) prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate.
Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $17 per hour.
A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600
When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.
Compute the total job cost for each of the following scenarios: a. If the direct labor cost method is used in applying factory overhead and the predetermined rate is 100%, what amount should be charged to Job 2010 for factory overhead? Assume that direct materials used totaled 5,000 and that the direct labor cost totaled 3,200. b. If the direct labor hour method is used in applying factory overhead and the predetermined rate is 10 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, and the number of direct labor hours totaled 250. c. If the machine hour method is used in applying factory overhead and the predetermined rate is 12.50 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, the direct labor hours were 250 hours, and the machine hours were 295 hours.