Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, itestimated that 97,500 direct labor-hours would be required for the period's estimated level of client service. The company alsoestimated $1,316,250 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm'sactual overhead cost for the year was $1,337,350 and its actual total direct labor was 101,100 hours.Required:1. Compute the predetermined overhead rate.2. During the year, Tech Solutions started and completed the Kavier Company engagement. The following information was availablewith respect to this job:Direct materialsDirect labor costDirect labor-hours workedCompute the total job cost for the Xavier Company engagement.Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 2Compute the total job cost for the Xavier Company engagement. (Round your intermediate calculations to 2 decimal places.)Direct materialsDirect labor$ 41,700$ 28,800390Overhead appliedTotal manufacturing cost$ Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, itestimated that 97,500 direct labor-hours would be required for the period's estimated level of client service. The company alsoestimated $1,316,250 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm'sactual overhead cost for the year was $1,337,350 and its actual total direct labor was 101,100 hours.Required:1. Compute the predetermined overhead rate.2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was availablewith respect to this job:Direct materialsDirect labor costDirect labor-hours workedCompute the total job cost for the Xavier Company engagement.$ 41,700$ 28,800390Complete this question by entering your answers in the tabs below.Required Required 2Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)Predetermined overhead rateper DLH

The predetermined overhead rate is calculated as follows: Predetermined overhead rate = Estimated…

ch Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it timated that 97,500 direct labor-hours would be required for the period's estimated level of client service. The company also timated $1,316,250 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's tual overhead cost for the year was $1,337,350 and its actual total direct labor was 101,100 hours. equired: Compute the predetermined overhead rate. During the year, Tech Solutions started and completed the Kavier Company engagement. The following information was available ith respect to this job: Direct materials Direct labor cost Direct labor-hours worked ompute the total job cost for the Xavier Company engagement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 $ 41,700 $ 28,800 390 Required 2 Compute the total job cost for the Xavier Company engagement. (Round your intermediate calculations to 2 decimal places.) Direct materials Direct labor Overhead applied

ch Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it timated that 97,500 direct labor-hours would be required for the period's estimated level of client service. The company also timated $1,316,250 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's tual overhead cost for the year was $1,337,350 and its actual total direct labor was 101,100 hours. equired: Compute the predetermined overhead rate. During the year, Tech Solutions started and completed the Kavier Company engagement. The following information was available ith respect to this job: Direct materials Direct labor cost Direct labor-hours worked ompute the total job cost for the Xavier Company engagement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 $ 41,700 $ 28,800 390 Required 2 Compute the total job cost for the Xavier Company engagement. (Round your intermediate calculations to 2 decimal places.) Direct materials Direct labor Overhead applied

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...

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Similar questions

If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
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.
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
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?
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
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 estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was $445,000, and there were 50,500 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
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.
A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
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?