Hulsey Coffee Co. allocates factory overhead using a single plantwide overhead rate based on direct labor hours. The company estimates that direct labor costs will be $144,000 and factory overhead costs will be $84,000. Employees are paid $12.00 an hour. To produce the 6,500 units of the Standard Coffee, the company requires 5,000 direct labor hours, while 11,000 units of Deluxe Coffee requires 10,400 direct labor hours. 1. Calculate the plantwide overhead rate. 2. Determine the factory overhead allocated to Standard Coffee. 3. Determine the factory overhead allocated to Deluxe Coffee. 4. Determine the per unit factory overhead to allocate to Standard Coffee. 5. Determine the per unit factory overhead to allocate to Deluxe Coffee. Blair Designs plans to allocate factory overhead based upon a departmental rate for the Sewing and Packaging Departments. The company expects to incur total overhead costs of $46,000, of which management expects 75% to be incurred by the Sewing Department and 25% to be incurred by the Packaging Department. Blair makes two products: Solid and Print. Use the following information for problems 6 and 7. Solid Print Sewing (direct labor hours) 2,825 5,800 Packaging (machine hours) 900 1,100 6. Calculate the departmental overhead rates. 7. Calculate the factory overhead to be allocated to each product line.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
1-3 have been answered. Please show work
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
