Forbes Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the Corporation estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000. The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost records for the period will show:
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A: Predetermined overhead rate for primary treatment = Manufacturing overhead cost / Direct labor hours…
Q: Reynolds Manufacturers Inc. has estimated total factory overhead costs of $142,800 and expected…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs.…
A: Predetermined overhead rates = Estimated manufacturing overhead / Allocation base
Q: Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead…
A: Estimated total manufacturing overhead = variable manufacturing overhead rate per hour * Total…
Q: At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the…
A: Manufacturing overhead is the cost incurred on the production of the goods.
Q: Crinks Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of…
A: Predetermined OH rate = Budgeted Overhead cost / Budgeted Labour hours…
Q: The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a…
A: Predetermined overhead rate is defined as the rate that is used to apply the manufacturing overhead…
Q: Mazoon Leather Company decided to use a multiple predetermined overhead rate to apply manufacturing…
A: Predetermined Overhead rate for Primary Treatment Department = Total Manufacturing OverheadTotal…
Q: Unigloo estimates that 12,000 direct labour-hours will be worked during the year. The predetermined…
A: Predetermined rate is determined in advance by estimating the amount of the overhead for the period…
Q: Meed Company estimates the company will incur $65,000 in overhead costs and 5,000 direct labor hours…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: Your Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing…
A: Applied overhead is the amount of overhead calculated by applying predetermined overhead rate on…
Q: Deloria Corporation has two production departments, Forming and Assembly. The company uses a…
A: Total Variable manufacturing overhead for Assembly Department = Variable manufacturing overhead per…
Q: Parker Corporation has a job-order costing system and uses a predetermined overhead rate based on…
A: Predetermined overhead rate refers to rate used for allocation of overhead to the products. It is…
Q: Senangin Corporation uses a job-order costing system and applies overhead on the basis of direct…
A: Prime cost means the addition of direct material and direct labor and other direct expenses.…
Q: Harwood Company is a manufacturer that operates a job-order costing system. Overhead costs are…
A: Given that: Estimated manufacturing overhead = $850,000 Estimated machine hours = 75000 hours
Q: Dearden Corporation uses a job-order costing system with a single plantwide predetermined overhead…
A: Predetermined overhead rate is that rate which is estimated for future and allocated to the…
Q: ATzmpany uses a predetermined overhead rate to apply manufacturing overhead to jobs. The…
A: Predetermined overhead rate = Estimated overhead costs/ Estimated labour hours
Q: At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the…
A: Predetermined Overhead Rate = Estimated overhead cost for the year Estimated level of activity for…
Q: Unigloo Corporation uses a predetermined overhead rate based on direct labour-hours to apply…
A: Predetermined rate is determined in advance by estimating the amount of the overhead for the period…
Q: Helland Corporation uses a job-order costing system with a single plantwide predetermined overhead…
A: Manufacturing overhead means the expense incurred in factory which is not directly linked with…
Q: Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This…
A: Given information is: Predetermined Overhead rate = $23.90 per hour Actual labour hours = 10500
Q: Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to…
A: The inverse of underapplied administrative costs is overapplied overhead. When actual expenses are…
Q: Reynolds Manufacturers Inc. has estimated total factory overhead costs of $104,400 and expected…
A: Predetermined overhead rate = Total factory overhead costs / Direct labor hours…
Q: Parker Company has a job-order costing system and uses a predetermined overhead rate based on direct…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated direct…
Q: Blue Devil Corp. is a manufacturer that uses job-order costing method. The company applies overhead…
A: Since there are multi sub-parts, we will solve first three for you. To get the remaining question…
Q: Black Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided…
A: solution given Estimated manufacturing overhead $139,080 Estimated machine-hours 3800…
Q: XYZ company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The…
A: The predetermined overhead rate is determined based on estimated production overhead and some other…
Q: A company uses job-order costing and allocates overhead costs using direct labor hours as the cost…
A: Manufacturing Cost: Manufacturing cost refers to the costs incurred by an organization in order to…
Q: At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the…
A: Predetermined overhead rate: Predetermined overhead rate is calculated befor the period begins. This…
Q: Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing…
A: Solution: Over or under applied overhead is based on the difference between overhead applied and…
Q: ABC Inc. uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. The…
A: Manufacturing Overhead costs includes all the indirect costs in manufacturing the product in the…
Q: Karvel Corporation uses machine hours as the basis for allocating manufacturing overhead costs to…
A: Predetermined overhead: =Estimated overhead/ Estimated machine hours Over or under applied: =Actual…
Q: The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for…
A: Given: Estimated Total factory overhead cost for the Blending Department = $130,000 Estimated Total…
Q: Reynolds Manufacturers Inc. has estimated total factory overhead costs of $141,600 and expected…
A: Debit to wip and credit to factory overhead credited for = (141,600 /11,800 ) *1,560 = 12*1,560 =…
Q: Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a…
A: Computation of the amount of overhead applied in both department is as follows:
Q: Kalp Corporation has two production departments, Machining and Finishing. The company uses a…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply…
A: Variance is known as a difference between the expected value and actual results. It may be labor…
Q: Mazoon Leather Company decided to use a multiple predetermined overhead rate to apply manufacturing…
A: Calculation of predetermined rate for primary treatment =( manufacturing cost + labour…
Q: At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the…
A: Underapplied or Overapplied overheads: The opposite of overapplied overhead is underapplied…
Q: Blue Devil Corp. is a manufacturer that uses job-order costing method. The company applies overhead…
A: Underapplied overhead means when applied overhead expense are less than actual overhead expenses…
Q: The HY manufacturing company computes predetermined overhead rate on the basis of machine hours in…
A: Predetermined overhead rate = manufacturing overhead/activity level
Q: silver company uses direct labor-hours in its predetermined overhead rate. At the beginning of the…
A: The manufacturing overhead are said to be underapplied when actual overheads are more than the…
Q: Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed…
A: The correct answer is $464,120.
Q: Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct…
A: Predetermined overhead rate = Budgeted overhead cost for the year Budgeted level of activity
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: The Collins Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The…
A: In order to determine the predetermined overhead rates, the estimated overhead cost is required to…
Q: Purves Corporation is using a predetermined overhead rate that was based on estimated total fixed…
A: predetermined overhead rate is such a rate that estimate ratio of estimated overheads cost to the…
Q: Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine…
A: given total manufacturing overhead costs to be $1,040,000 total number of machine-hours to be…
Q: Deloria Corporation has two production departments, Forming and Assembly. The company uses a…
A: Selling price is the price at which a commodity is sold and it includes the cost incurred to make…
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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?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?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?
- 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?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?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?
- Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursBaldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.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.
- Comacho Chemical Co. recorded costs for the month of 18,900 for materials, 44,100 for labor, and 26,250 for factory overhead. There was no beginning work in process, 8,000 units were finished, and 3,000 units were in process at the end of the period, two-thirds completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead, Machining, and Assembly. The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following: During the year, both Machining and Assembly used 28,000 direct labor hours. Factory overhead costs incurred during the year follow: In determining application rates at the beginning of the year, cost allocations were made as follows, using the sequential distribution method: Building Maintenance to: General Factory Overhead, 10%; Machining, 50%; Assembly, 40%. General factory overhead was distributed according to direct labor hours. Required: Determine the under- or overapplied overhead for each production department. (Hint: First you must distribute the service department costs.)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?