Answered: Compute the Predetermined Overhead Rate…

Business

Accounting

Compute the Predetermined Overhead Rate [LO3–1

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter27: Lean Principles, Lean Accounting, And Activity Analysis

Section: Chapter Questions

Problem 27.4CP

See similar textbooks

Similar questions

EXERCISE 3–5 Underapplied and Overapplied Overhead [LO3–7]ABS Manufacturing uses a predetermined overhead rate of $18.20 per direct labor-hour. This predetermined ratewas based on a cost formula that estimates $218,400 of total manufacturing overhead for an estimated activity levelof 12,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $215,000 and11,500 total direct labor-hours during the period.Required:1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to Cost of Goods Sold,what would be the effect of the underapplied or overapplied overhead onthe company’s gross margin for the period?
EXERCISE 3–4 Prepare Journal Entries [LO3–4] Larned Corporation recorded the following transactions for the just completed month. $80,000 in raw materials were purchased on account. $71,000 in raw materials were requisitioned for use in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $112,000 were incurred. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor. Additional manufacturing overhead costs of $175,000 were incurred. Manufacturing overhead is applied based on direct labor hours. The PDOR is $10 per DLH. 5,050 actual direct labor hours were incurred. Jobs totaling $105,000 were completed and transferred to finished goods. Jobs costing $85,000 were sold for $200,000 (2 entries) Sales salaries incurred on account were $15,000 Required: Record the above transactions in journal entries.
Ch. 8 Question 7 Please solve and answer the following quesitons: Question 7 Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: Selling costs are expected to be 6 percent of sales.Fixed administrative expenses per month total $1,200.Required:Determine Shadee's budgeted selling and administrative expenses for May and June.
EXERCISE 3–2 Apply Overhead [LO3–2]Lexter Company uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate wasbased on a cost formula that estimated $257,400 of total manufacturing overhead for an estimated activity level of11,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $249,000 and 10,800total direct labor-hours during the period.Required:Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
(CH.12) Question 4 of 4 -15 During the year, 3,600 units were produced, 14,500 hours were worked, and the actual manufacturing overhead was $49,000. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours. (a) Calculate the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, e.g. 15.25.) \table[[Variable manufacturing overhead,$],[Fixed manufacturing overhead,$
Ch. 8 Homework Question 4 Please solve and explain the following: Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced. Required:1. Determine Shadee's budgeted cost of closures purchased for May and June 2. Determine Shadee's budget manufacturing overhead for May and June
Ch. 8 Quesiton 4 Homework Please answer and explain this question correctly. The previous answer given to me was incorrect. Thank you. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced. Required:1. Determine Shadee's budgeted cost of closures purchased for May and June2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) **if you cannot solve from the information given then use your own example and show how I would solve a quesiton asking for this information
Ch 10 Q 8 Cullumber produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line’s return on investment. The following data is from the most recent year of operations. Aluminum Vinyl Sales $4,800,000 $4,200,000 Variable costs 2,304,000 2,355,000 Direct fixed costs 1,728,000 1,530,000 Average assets 3,200,000 1,500,000 QUESTION Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12%.) Aluminum Vinyl ROI enter percentages rounded to 2 decimal places % enter percentages rounded to 2 decimal places %
Q – 5: Bettina Company incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials $15 Direct labor$7.5 Variable manufacturing overhead$3 Variable selling and administrative expenses$6 Fixed costs per year: Fixed manufacturing overhead . . . . . . . . . . . . . . . . . $45,000 Fixed selling and administrative expenses . . . . . . . $150,000 During the last year, 15,000 units were produced and 12,500 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $63,750 for the 2,500 unsold units. Required: 1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer. 2. Assume that the company wishes to prepare ﬁnancial statements for the year to issue to its stockholders. a. Is the $63,750 ﬁgure for Finished Goods inventory the correct amount to use on these…
Ch. 8 Homework Question 6 Please answer and solve the following Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31 and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Required: 1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $2.) (Round your answer to 2 decimal places.) 2. Determine Shadee's budgeted cost of goods sold for May and June.
EXERCISE 3–4 [LO3–5, LO3–7]Jarvis Enterprises recorded the following transactions for the just completed month. The companyhad no beginning inventories.a. $94,000 in raw materials were purchased for cash.b. $89,000 in raw materials were requisitioned for use in production. Of this amount, $78,000 was for directmaterials and the remainder was for indirect materials.c. Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and theremainder was for indirect labor.d. Additional manufacturing overhead costs of $143,000 were incurred and paid.e. Manufacturing overhead costs of $152,000 were applied to jobs using the company’s predetermined overheadrate.f. All of the jobs in progress at the end of the month were completed and shipped to customers.g. Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.Required:.Determine the cost of goods sold for the period.
QUESTION 3 (17)Mvete Limited is an established company in the manufacturing industry. The company is manufacturing a very successful product, namely Vete12. The following cost structure is given to you, the newly appointed Trainee Cost Accountant, to advise management on the different levels of production: At the current level of 15 000 units produced and sold:Direct material R20 per unit Direct labour R375 000Indirect material R5 per unit Indirect labour (includes the production supervisors’ salary of R240 000. The remainder is R5.50 per unit R352 500 Other manufacturing overheads (all variable) R12.50 per unit Depreciation charge PPE (production plant and machinery) R375 000Selling and administrative expenses: • Variable selling expenses R10.25 per unit• Fixed selling expenses R5 per unit • Administrative expenses (all fixed) R7 per unit Required a) Calculate at the three (3) different production levels of: • 15 000 units (current level of production)• 20 000 units,• 12 000 units i.…