SavedmeworkAt the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions:overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that actual overheadcosts for the year are $1,142,500. Actual direct materials cost had been assigned to jobs as follows.Jobs completed and soldJobs in finished goods inventoryJobs in work in process inventory$410,00077,00053,000Total actual direct materials cost$540,0001. Determine the predetermined overhead rate.2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate anddetermine whether overhead is overapplied or underapplied.4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.Complete this question by entering your answers in the tabs below.Req 1Req 2 and 3Req 4Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate anddetermine whether overhead is overapplied or underapplied.Factory Overhead1,142,500Actual overheadApplied overhead1,142,500< Req 1Req 4 > ng...SavedomeworkAt the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions:overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that actual overheadcosts for the year are $1,142,500. Actual direct materials cost had been assigned to jobs as follows.Jobs completed and soldJobs in finished goods inventoryJobs in work in process inventory$410,00077,00053,000Total actual direct materials cost$540,0001. Determine the predetermined overhead rate.2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate anddetermine whether overhead is overapplied or underapplied.4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.Complete this question by entering your answers in the tabs below.Req 1Req 2 and 3Req 4Determine the predetermined overhead rate.Overhead RateChoose Numerator:1Choose Denominator:=Overhead RateEstimated overhead costs/ Estimated direct material costs=Overhead rate500,000 =210%< Req 11,050,000 1 $Req 2 and 3>

Name: SavedmeworkAt the beginning of the year, Custom Mfg. established its
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Description: SavedmeworkAt the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions:overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that a

Manufacturing overhead is the cost incurred on the production of the goods.

Business

Accounting

At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that actual overhead costs for the year are $1,142,500. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $410,000 77,000 53,000 Total actual direct materials cost $540,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate. Choose Numerator: = Overhead Rate Estimated overhead costs = Overhead rate $ 500,000 = 210% Overhead Rate 1 Choose Denominator: / Estimated direct material costs 1,050,000 1 $ < Req 1 Req 2 and 3>

At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that actual overhead costs for the year are $1,142,500. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $410,000 77,000 53,000 Total actual direct materials cost $540,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate. Choose Numerator: = Overhead Rate Estimated overhead costs = Overhead rate $ 500,000 = 210% Overhead Rate 1 Choose Denominator: / Estimated direct material costs 1,050,000 1 $ < Req 1 Req 2 and 3>

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 11PA: When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead...

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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?
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
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.
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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
Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.