D'Santos uses a job-order cost system with machine hours as an overhead base. Thefollowing information relates to D'Santos for last year:Estimated machine hours for the yearActual machine hours for the yearPredetermined overhead rateUnderapplied factory overhead11. What is the peso amount of the following items?Estimated OHP 61,200P 61,200P 63,00042,00040,800P 1.50 per MHP 2,600Applied OHActual OHа..P 63,000P 60,400b.63,00065,600с.61,20058,600d.P 63,00061,20063,800 Justine Company budgeted total variable overhead costs at P180,000 for the currentperiod. In addition, they budgeted costs for factory rent at P215,000, costs fordepreciation of office equipment at P12,000 coșts for office rent at P92,000, and costsfor depreciation of factory equipment at P 38,000. All these costs were based uponestimated machine hours of 80,000. At the end of the period, the Factory Overheadcontrol account had a balance of P 387,875. Actual machine hours were 74,000.12. What was the over or underapllied factory overhead for the period?P 12,650 overappliedb.а.P 12,650 underappliedP 108,850 overappliedd.с.P 108,850 underapplied

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Description: D'Santos uses a job-order cost system with machine hours as an overhead base. Thefollowing information relates to D'Santos for last year:Estimated machine hours for the yearActual machine hours for the yearPredetermined overhead rateUnderapplied fac

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D'Santos uses a job-order cost system with machine hours as an overhead base. The following information relates to D'Santos for last year: Estimated machine hours for the year Actual machine hours for the year Predetermined overhead rate 42,000 40,800 P 1.50 per MH P 2,600 Underapplied factory overhead 11. What is the peso amount of the following items? Estimated OH P 61,200 P 61,200 P 63,000 P 63,000 Applied OH P 63,000 Actual OH P 60,400 а.. b. 63,000 65,600 с. 61,200 58,600 d. 61,200 63,800

D'Santos uses a job-order cost system with machine hours as an overhead base. The following information relates to D'Santos for last year: Estimated machine hours for the year Actual machine hours for the year Predetermined overhead rate 42,000 40,800 P 1.50 per MH P 2,600 Underapplied factory overhead 11. What is the peso amount of the following items? Estimated OH P 61,200 P 61,200 P 63,000 P 63,000 Applied OH P 63,000 Actual OH P 60,400 а.. b. 63,000 65,600 с. 61,200 58,600 d. 61,200 63,800

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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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?
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?
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.
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.
The actual overhead for a company is $73,175. Overhead was based on 4,500 machine hours and was $3,325 over applied for the year. What is the overhead application rate per direct labor hour? What is the journal entry to dispose of the under applied overhead?
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 direct labor hours for Job 101 are 30 and the predetermined factory overhead rate is 5/direct labor hour, what is the applied factory overhead amount? (a) 250 (b) 500 (c) 150 (d) It cannot be determined.
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.
Inez has the following information relating to Job AA5. Direct material cost was $200,000, direct labor was $36,550, and overhead applied on the basis of direct labor hours was $73,100. What was the predetermined overhead rate using the labor rate of $17 per hour?
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?
Compute the total job cost for each of the following scenarios: a. If the direct labor cost method is used in applying factory overhead and the predetermined rate is 100%, what amount should be charged to Job 2010 for factory overhead? Assume that direct materials used totaled 5,000 and that the direct labor cost totaled 3,200. b. If the direct labor hour method is used in applying factory overhead and the predetermined rate is 10 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, and the number of direct labor hours totaled 250. c. If the machine hour method is used in applying factory overhead and the predetermined rate is 12.50 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, the direct labor hours were 250 hours, and the machine hours were 295 hours.
The books of Petry Products Co. revealed that the following general journal entry had been made at the end of the current accounting period: The total direct materials cost for the period was $40,000. The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)