Company XYZ applies overhead cost to jobs on the basis of direct labor cost. Job A, which was started and completed during the current period, shows charges of $15,000 for direct materials, $13,000 for direct labor, and $26,000 for overhead on its job cost sheet. Job B, which is still in process at year-end, shows charges of $12,400 for direct materials and $10,000 for applied overhead. Direct labor cost of Job B at year-end is: Şelect one: a. $6,000 b. $13,000 c. None of the answers given d. $5,000 e. $22,400 tntal machine
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A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
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.…
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A: SOLUTION- FORMULAS- 1- PREDETERMINED OVERHEAD RATE= ESTIMATED OVERHEADS / ESTIMATED LABOR COST.…
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A: Job costing includes the aggregation of the expenses of materials, overhead and labor for a…
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A: Predetermined Overhead rate = Manufacturing overhead costs / Machine hours
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A: Factory overhead means all type of indirect costs being incurred on production and manufacturing of…
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A: Overheads are the indirect costs of manufacturing a product. Overheads include cost of…
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A: predetermined overhead rate based on direct labor hours = Budgeted manufacturing overhead/estimated…
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A: Factory overhead cost is the cost other than the material and labor cost that are incurred while…
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A: job cost sheet is such a sheet that is prepared of the actual cost of a job. the actual cost of job…
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A: Direct labor cost are those cost which incurred directly on the good in the manufacturing process of…
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A: The following data is provided : Total manufacturing overhead = $1,010,000 Total Direct labor costs…
Q: the total overhead applied to job no. 101 amounted to:
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A: Predetermined MOH rate=Estimated MOH/Estimated Machine hrs. = $1,000,000/25,000 m/c hrs.= $ 40…
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A: In this numerical has covered the concept of Overhead measurement .
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A: Applied Overhead = Actual DLHs x Predetermined Overhead rate Applied Overhead = 5,000 DLHs x $50 per…
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A: The addition of direct material cost, direct labor cost, and manufacturing overhead cost is equal to…
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A: Predetermined overhead rate = Total estimated manufacturing overhead/Total estimated machine hours
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A: Predetermined overhead rate = Estimated overhead costs/ Estimated labour hours
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A: Formula: Predetermined overhead rate = Estimated total overhead costs / Direct labor costs Division…
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A: Job costing is used to estimate the total cost of a specific job. The overhead applied are…
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A: Factory overhead cost is the cost other than the material and labor cost that are incurred while…
Q: Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was…
A: Overhead costs can be allocated on different bases some of them used allocation on the basis of…
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A: Given,that grip corporation DEPT;A direct materials ; 50,000 manufacturing overheads ; 80,000…
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A: Solution 1: Overhead rate Choose Numerator / Choose Denominator = Overhead rate Estimated…
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A: Manufacturing Cost: Manufacturing cost refers to the costs incurred by an organization in order to…
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A: Overheads are considered as fixed and common expenses that should be allocated to the products based…
Q: . Dale Company, which applies overhead at the rate of 190% of direct labor cost, began work on job…
A: Total Applied overhead = Direct Labor cost x Overhead rate
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A: Overhead means the cost incurred indirect in factory for the production of goods. Job costing means…
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A: Predetermined overhead rate is used to calculate the estimated overhead. It shows the rate at which…
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A: Formula: Predetermined overhead rate = Manufacturing overhead / direct labor hours.
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A: Variance is known as a difference between the expected value and actual results. It may be labor…
Q: A company uses a predetermined overhead rate based on direc labor hours to apply manufacturing…
A: Predetermined overhead rate = estimated total manufacturing overhead cost / direct labor-hours =…
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A: Predetermined Overhead Rate-: A predetermined overhead rate is evaluated by allocating the…
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A: Underapplied or Overapplied overheads: The opposite of overapplied overhead is underapplied…
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A: Predetermined overhead rate = manufacturing overhead/activity level
Q: Company XYZapplies overhead cost to jobs on the basis of direct labior cost. Job A, which was…
A: Option d is correct. Question says that overhead cost is applied on the basis of labour cost. Job A…
Q: Company XYZ applies overhead cost to jobs on the basis of direct labor cost Job A, which was started…
A: Direct labor cost is a part of the payroll. It is directly associated with the manufacture of a…
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A: Job order costing is a method of costing that is used to calculate the cost of goods manufactured…
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A: When the Applied overhead is more than actual overhead then its called Overapplied and when the…
Q: Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was…
A: Overhead costs: The expenses that are not directly related to the manufacturing process are referred…
Q: Company XYZ applies overhead cost to jobs on the basis of direct labor cost, Job A, which was…
A: The traditional method of allocating the indirect costs in the manufacturing corporation allows them…
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Q: Garrison, Inc., which uses a job-costing system, began business on January 1, 20x3 and applies…
A: Working Note: To determine the Overhead under applied or overapplied we have to calculate the…
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- Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the Work-in-Process account for the month of June. During the month of June, direct labor totaled 30,000 and 24,000 of overhead was applied to production. Finished Goods was debited 100,000 during June. Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturing overhead of 3,400. What was the amount of direct materials charged to Job number 83? a. 3,400 b. 4,250 c. 8,350 d. 7,580Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, 4,500 of indirect materials and 8,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Journalize the summary entry to record each of the following operations for March (one entry for each operation): a. Direct and indirect materials used. b. Direct and indirect labor used. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. Completion of Jobs 301 and 302.
- 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?K company production was working on Job 1 and Job 2 during the month. Of the $780 in direct materials. $375 in materials was requested for Job 1. Direct labor cost, including payroll taxes, are $23 per hour, and employees worked 18 hours on Job 1 and 29 hours on Job 2. Overhead is applied at the rate of $20 per direct labor hours. Prepare job order cost sheets for each job.During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
- Luna Manufacturing Inc. completed Job 2525 on May 31, and there were no jobs in process in the plant. Prior to June 1, the predetermined overhead application rate for June was computed from the following data, based on an estimate of 5,000 direct labor hours: The factory has one production department and uses the direct labor hour method to apply factory overhead. Three jobs are started during the month, and postings are made daily to the job cost sheets from the materials requisitions and labor-time records. The following schedule shows the jobs and amounts posted to the job cost sheets: The factory overhead control account was debited during the month for actual factory overhead expenses of 27,000. On June 11, Job 2526 was completed and delivered to the customer using a mark-on percentage of 50% on manufacturing cost. On June 24, Job 2527 was completed and transferred to Finished Goods. On June 30, Job 2528 was still in process. Required: 1. Prepare job cost sheets for Jobs 2526, 2527, and 2528, including factory overhead applied when the job was completed or at the end of the month for partially completed jobs. 2. Prepare journal entries as of June 30 for the following: a. Applying factory overhead to production. b. Closing the applied factory overhead account. c. Closing the factory overhead account. d. Transferring the cost of the completed jobs to finished goods. e. Recording the cost of the sale and the sale of Job 2526.During August, Skyler Company worked on three jobs. Data relating to these three jobs follow: Overhead is assigned on the basis of direct labor hours at a rate of 2.30 per direct labor hour. During August, Jobs 39 and 40 were completed and transferred to Finished Goods Inventory. Job 40 was sold by the end of the month. Job 41 was the only unfinished job at the end of the month. Required: 1. Calculate the per-unit cost of Jobs 39 and 40. (Round unit costs to nearest cent.) 2. Compute the ending balance in the work-in-process inventory account. 3. Prepare the journal entries reflecting the completion of Jobs 39 and 40 and the sale of Job 40. The selling price is 140 percent of cost.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?
- 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?Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Eto Manufacturing had the following transactions during the month: (a) Purchased raw materials on account, 70,000. (b) Issued direct materials to Job No. 300, 25,000. (c) Issued indirect materials to production, 10,000. (d) Paid biweekly payroll and charged direct labor to Job No. 300, 8,000. (e) Paid biweekly payroll and charged indirect labor to production, 3,000. (f) Issued direct materials to Job No. 301, 20,000. (g) Issued indirect materials to production, 4,000. (h) Paid miscellaneous factory overhead charges, 6,000. (i) Paid biweekly payroll and charged direct labor to Job No. 301, 10,000. (j) Paid biweekly payroll and charged indirect labor to production, 2,000. REQUIRED Prepare general journal entries for transactions (a) through (j).