A Company uses job order costing and has chosen machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 800,000 hours. The estimated variable overhead is $5 per machine hour and the estimated fixed overhead :costs are $400,000. The predetermined overhead rate is $0.5 .a O $5.5 b O $2.5 .c O $11 .d O None of the answers given .e O
Q: A Company uses job order costing and has chosen machine hours to allocate its manufacturing…
A: Job costing means where actual direct cost is included in specific cost and overhead is applied on…
Q: Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct…
A: Answers for the given 3 requirements are as follows:
Q: A Company uses job order costing and has chosen machine hours to allocate its manufacturing…
A: Working: Fixed overhead per hour = Total fixed costNo. of hours=$800,000400,000=$2
Q: A Company uses job order costing and has chosen direct labor hours to allocate its manufacturing…
A: Job costing means where actual direct cost is included in specific cost and overhead is applied on…
Q: Cavy Company estimates that total factory overhead costs will be $653,310 for the year. Direct labor…
A: Predetermined factory overhead rate = Total factory overhead costs / Estimated direct labor hours…
Q: Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates…
A: Definition: Predetermined manufacturing overhead rate is the rate that has been worked out at the…
Q: The company uses a predetermined overhead rate to be applied to jobs. Dept A is based on direct…
A: Manufacturing overhead applied = Predetermined rate*Machine hours
Q: Glannitti Corporation bases Its predetermined overhead rate on the estimated machine-hours for the…
A: The factory overhead variances become more meaningful when a flexible budget is prepared. The…
Q: Reynolds Manufacturers Inc. has estimated total factory overhead costs of $142,800 and expected…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: True Company provides the following estimated costs for the year The company unes a predesemined…
A: The predetermined overhead rate can be calculated by dividing total overhead by total machine hours.…
Q: Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: A Company uses job order costing and has chosen direct labor hours to allocate its manufacturing…
A: Predetermined overhead rate = Total estimated overhead/ Estimated laboour hours
Q: Factory Overhead (a) Determine the total factory overhead amount applied. Total factory overhead…
A: Overhead is the total indirect costs of materials, labour and other expenses which needs to be…
Q: Unigloo Corporation uses a predetermined overhead rate based on direct labour-hours to apply…
A: Pre-determined overhead rate is calculated before the period begins for the first step is to…
Q: AMR Corp. currently uses a firm-wide overhead application based on expected diret labor hours The…
A: Overhead alludes to the costs of running a firm that cannot be clearly assigned to any single…
Q: Cavy Company estimates that the factory overhead for the following year will be $768,900. The…
A: Predetermined overhead rate = Total estimated overhead costs / total estimated machine hours Applied…
Q: Austin Company uses a job order cost accounting system. The company's executives estimated that…
A: Pre Determined rate = Estimated Overhead/Estimated Direct Labor Hours Pre Determined rate is used…
Q: A Company uses job order costing and has chosen machine hours to allocate its manufacturing…
A: Predetermined overhead rate = Fixed manufacturing overhead rate + Variable manufacturing overhead…
Q: Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the…
A: Overhead expenses or costs are those costs which have to be incurred in to produce the production of…
Q: Jackson Company estimated that its manufacturing employees would work 84,000 direct labor hours…
A: Overapplied overhead = Overhead applied - Actual overhead Overhead applied = Overapplied overhead +…
Q: Unigloo estimates that 12,000 direct labour-hours will be worked during the year. The predetermined…
A: Predetermined rate is determined in advance by estimating the amount of the overhead for the period…
Q: Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is…
A: Predetermined overhead rate is defined as the allocation rate which is used in order to apply the…
Q: Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the…
A: The predetermined overhead rate is calculated as estimated total manufacturing overhead cost divided…
Q: Sensual Scents, Inc. uses a job-order cost system with machine hours as the overhead base. At the…
A: SOLUTION OVERHEAD REFERS TO THE ONGOING BUSINESS EXPENSES NOT DIRECTLY ATTRIBUTED TO CREATING A…
Q: Hanif Corporation uses a predetermined overhead rate based on direct labor-hours to apply…
A: Direct labor cost are those cost which incurred directly on the good in the manufacturing process of…
Q: Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor…
A: Overhead (OH) means total of all indirect expenses which is not know in advance and it is charged on…
Q: Cavy Company estimates that total factory overhead costs will be $572,128 for the year. Direct labor…
A: Solution a1: Predetermined factory overhead rate = Estimated overhead / Estimated direct labor hours…
Q: A Company uses job order costing and has chosen direct labor hours to allocate its manufacturing…
A: The predetermined overhead rate is used to apply manufacturing overhead to products or job orders…
Q: A Company uses job order costing and has chosen direct labor hours to allocate its manufacturing…
A: Using the information given in question, we can compute the predetermined overhead rate as follows:…
Q: Austin Company uses a job order cost accounting system. The company's executives estimated that…
A:
Q: A Company uses job order costing and has chosen direct labor hours to allocate its manufacturing…
A: Predetermined overhead rate = Variable manufacturing overhead rate + Fixed manufacturing overhead…
Q: uzzle Company uses a job order costing system. The company's executives estimated that direct labor…
A: Predetermined overhead rate = Estimated factory overhead / estimated direct labor hours
Q: A company uses job-order costing and allocates overhead costs using direct labor hours as the cost…
A: Manufacturing Cost: Manufacturing cost refers to the costs incurred by an organization in order to…
Q: Your Company uses a predetermined overhead rate based on machine hours to apply manufacturing…
A: Step 1: When applied overheard is greater than actual overhead that situation is over-applied…
Q: Pocono Cement Forms expects $700,000 in overhead during the next year. It does not know whether it…
A: In the above case, Pocono Cement Forms is expecting $700,000 in overheads during the next year.…
Q: The company uses a predetermined overhead rate to be applied to jobs. Dept A is based on direct…
A: Predetermined rate used in Department A = Manufacturing overhead in department A / Direct labor…
Q: Direct materials (3.0 Ibs. @ $5.00 per Ib.) $ 15.00 Direct labor (1.8 hrs. @ $12.00 per hr.) 21.60…
A: Direct material Actual = 46000 lbs @ $ 5.20 Standard = 3 lbs per unit Therefore for (capacity…
Q: A Company uses job order costing and has chosen machine hours to allocate its manufacturing…
A: Job costing means where actual direct cost is included in specific cost and overhead is applied on…
Q: Reynolds Manufacturers Inc. has estimated total factory overhead costs of $141,600 and expected…
A: Debit to wip and credit to factory overhead credited for = (141,600 /11,800 ) *1,560 = 12*1,560 =…
Q: A Company uses job order costing and has chosen machine hours to allocate its manufacturing…
A: Predetermine Overhead rate = (Fixed Overhead Cost / Total Machine Hours) + Variable Overhead Cost
Q: Cavy Company estimates that total factory overhead costs will be $685,938 for the year. Direct labor…
A: Factory overhead refers to the expenses which states how much it costs to produce the products of…
Q: Your Company uses a predetermined overhead rate based on direct labor hours. The POR is $10 per…
A: If actual overhead is more than overhead that applied then it results to underapplied overhead
Q: a company uses machine hours to allocate its manufacturing overhead. The company estimates that…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the…
A: Introduction: A predetermined overhead rate is a rate that is applied to cost objects for a specific…
Q: A Company uses job order costing and has chosen machine hours to allocate its manufacturing…
A: Job Order Costing:-It tracks prime cost to assign direct material and direct labor cost to the…
Q: Ethel corp has the following data for the year 2021 Estimated FOH 40,000 +(P 2 x Mhr) Estimated…
A: Predetermined FOH = (Estimated FOH / Estimated machine hours ) + P2
Q: Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct…
A: Pre-determined overhead allocate rate: It the rate of allocating the expected overheads to the…
Q: Cavy Company estimates that total factory overhead costs will be $1,011,028 for the year. Direct…
A: Predetermined Factory overhead rate = Total Factory overhead costs / Direct labor hours Overhead…
Q: A) Explain in detail how a single, plant-wide factory overhead allocation rate is established (i.e.,…
A: A Single plant-wide factory overhead rate is the rate used for allocation of overheads. This rate is…
Q: (A) Explain in detail how a single, plant-wide factory overhead allocation rate is established…
A: Single plantwide overhead rate is which a company uses a single overhead rate to allocated all of…
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Step by step
Solved in 2 steps
- Spring 2021 : Cost Accounting - ACT208 Dashboard My courses ACT208 (S21) Najay Murray - Notes Discussion Question 1 Discussion Question 1 Search Search forums Discussion Question 1 Discussion Question 1 Settings Display mode Display replies flat, with oldest first Display replies flat, with newest first Display replies in threaded form Display replies in nested form Discussion Question 1 by Najay Murray - Thursday, 21 January 2021, 12:12 AM Number of replies: 9 Within the costing system of a manufacturing company the following types of expenses were incurred: Cost of oils used to lubricate production machinery Motor vehicle licenses for lorries Depreciation of factory plant and equipment Cost of chemicals used in the laboratory Commission paid to sales representatives Salary of the secretary to the finance director Trade discount given…1. The following information was reported for Gray Enterprises on December 31, 2020.Manufacturing Overhead Debit Credit 3,410 51,520 15,030 37,090 Double line4,010 Double line A. What is the actual manufacturing overhead? B. What is the allocated manufacturing overhead? C. Is manufacturing overhead underallocated or overallocated? D. Prepare the adjusting entry.Journal Date Description Debit Credit Dec. 31, 20 Dec. 31, 20 2. The following information was reported for Gray Enterprises on December 31, 2021.Manufacturing Overhead Debit Credit 2,020 56,340 15,540 31,920 Double line Double line6,860 A. What is the actual manufacturing overhead? B. What is the allocated manufacturing overhead? C. Is manufacturing overhead underallocated or overallocated? D. Prepare the adjusting entry.Journal Date Description Debit Credit Dec. 31, 20 Dec. 31, 20C4Q5 Need help Prepare journal entries for the December 31 payroll. 2. Use T-accounts to compute the following: a. The total amount of materials requisitioned into work-in-process during December b. The total amount of direct manufacturing labor recorded in work in process during December (Hint: You have to solve requirements 2b and 2c simultaneously) c. The total amount of manufacturing overhead recorded in work-in-process during December d. Ending balance in work-in-process, December 31 e. Cost of goods sold for December before adjustments for under- or overallocated manufacturing overhead 3. Prepare closing journal entries related to manufacturing overhead. Assume that all under- or overallocated manufacturing overhead is closed directly to Cost of Goods Sold.
- Give typing answer with explanation and conclusion You are given the following information on a Company - ROAop = 10%, tc = 30% and rd = 5% if D/EV = 30%, what is ROE = ? Question 21 options: 8.05% 8.50% 10.00% 15.00% the answer is 8.5% but i dont understand how to get there can someone show me the work and break it downQuestion 3: The following data relates to the Aahil & co. for the month of June 2013. Company using job order costing system. Job Numbers Direct Material Direct Labor 1 30000 50000 2 20000 40000 3 30000 25000 4 15000 10000 FOH applied 120% of the direct labor to each. Job No. 1, 2 and Job No. 3 were completed. Job No. 1 & 2 was sold 45% above the cost. Required: b) Calculate the following requirements. i. COGM. ii.WIP ending. iv. FG ending. v. Gross profitJean's an things is a factory which makes term clothing. At the end of the accounting year December 32 2009. the following information was availableStock as January 1 2009Raw materials $33500Work in Progress $7300Finished Good $82770Rent &rates $12300Machinery at cost $500000Administrative expenses $25230Factory wages $135000Factory salaries $72500Selling and distribution expense $43820Purchase of raw materials $247300Carriage inwards on raw material $1500Return Outwards $3000Carriage outwards $1000Factory insurance $15000Sales $725650Stocks at December 31 2009Raw Materials $13220Work in Progress $6900Finished Goods $95240The following information is provided1. Machinery is to be depreciate at 25% per annually.2. Tent and rates are to be shared equally between office and factory3.Factory insurance is prepaid to March 2010 monthly premiums $1000Prepare a manufacturing Account for the year ended December 31, 2009 showing clearly. The cost of raw materials consumed. The prime…
- Subject: Cost managemet & accounting PQ – 2*The following data relates to M/s. Zubair Co. for the month of August 2018 ( who maintains Job Order Cost System ) .DATAa) Material purchased on account Rs. 145,000b) Material requisitioned and Factory Labour usedMaterial Factory LabourJob No. 201 Rs. 12,000 Rs. 20,000Job No. 202 Rs. 8,000 Rs. 15,000Job No. 203 Rs. 25,400 Rs. 13,500Job No. 204 Rs. 16,600 Rs. 21,500Job No. 205 Rs. 15,000 Rs. 8,200Job No. 206 Rs. 9,000 Rs. 4,600For general factory use Rs. 5,000 Rs. 8,000c) Factory overhead cost incurred on account Rs. 70,800d) Depreciation of Machinery Rs. 10,000e) The Factory overhead rate is 110 % of direct labour cost.f) Job completed: No. 201, 203, 204 and 206.g) Job No. 201, 203 and 204 were shipped and customers were billed for Rs. 104,000, Rs. 105,000 and Rs. 106,000. REQUIRED:ii) Prepare Accounts in Ledger of the Company for the Accounts, Work-in-Process and Finished Goods.The following information relates to company XYZ. Manufacturing overheads: BWPLighting & Heating 8 000Administration employees 70 000Employee accident insurance 1 200Plant and Equipment Insurance 70 000Plant and Equipment maintenance & repairs (minor) 20 000Plant and Equipment maitenance & repairs (major) 200 000Rent 25 000 department 1 department 2 department 3 area occupied sdm 1200 2300 3500 deppreciation 20000 40000 60000 no of employees 10 18 28 book value 250000 450000 700000 maintanance hours 18000 25000 43000 indirect materias 8000 12000 20000 indirect labour 10000 14000 24000…Dake Coporaton elevant ange of actvity s 2800 unts 060 unes henolloesDirect aterialsDirect laborVariable anfacturing verheadFixed manufacturing overbeadFived selling eNpeeseFixed adainistrative espeseSales commissioesVariable aninistrative eeseegeMule ChoceCest peatFor financial repotg parpses the otal amaut of arotuct coss ue t make &nee
- S1: When raw materials are requisitioned and placed into production, the Raw Materials Inventory account is debited.S2: Over-applied overhead that is material in amount is closed to the Cost of Sales account at year-end. Group of answer choices False; True False; False True; True True; Falsesiness AccountingQ&A LibraryThe Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and $5,024,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C November 1 Bal. b/f Direct Materials Used $51,250 256,400 Other transactions incurred: ▪ Indirect material issued to production was $40,360 ▪ Total manufacturing labour incurred in November was $368,000, 75% of this amount represented direct labour. ▪ Other manufacturing overhead costs incurred for November amounted to $340,490. ▪ Two jobs were completed with total costs of $384,000 & $270,000 respectively. They were sold on account at a margin of 33⅓% on sales. Required: i) Compute Harriott’s predetermined manufacturing overhead rate for 2020. ii) State the journal entries…The following information relates to company XYZ.Manufacturing overheads: BWPLighting & Heating 8 000Administration employees 70 000Employee accident insurance 1 200Plant and Equipment Insurance 70 000Plant and Equipment maintenance & repairs (minor) 20 000Plant and Equipment maitenance & repairs (major) 200 000Rent 25 000 Allocation by department Department A Department B TotalArea occupied (sqm2) 1 200 2300 3 500Depreciation 20 000 40 000 60…