If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method?
Q: Thorn company forecast that total overhead for the current year will be $15,500,000 with 250,000…
A: Overheads are considered as fixed and common expenses that should be allocated to the products based…
Q: Thomlin Company forecasts that total overhead for the current year will be $11,081,000 with 151,000…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to…
A: High low method The fixed and variable elements of a mixed cost can be separated using the high-low…
Q: At the begging of the year, Crane Company estimates annual overhead costs to be 2400000 and that…
A: Calculate overhead cost per machine hour:
Q: Perez Corporation expects to incur indirect overhead costs of $107,550 per month and direct…
A: Total production in units for four months = 5,200 + 8,500 + 3,900 + 6,300 Total production in units…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: Predetremined Overhead Rate = Estimated Total Maufacturing Overhead / Estimated Direct Labor hours
Q: Suppose that a manufacturer plans to produce 78,000 units of product during a year. A lot of size L,…
A: Demand D = 78000 Units Cost price Cp = $7.5 per unit Set up Costs = $ 200 Inventory carrying costs…
Q: The predetermined overhead rate for 2020 is estimated at _____________. A. $29.84 per machine hour
A: Given information is: Estimated machine hours = 10,000 Variable manufacturing overhead rate = $6.82…
Q: The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours.…
A: The predetermined overhead rate is the allocation rate used to allocate the manufacturing overhead…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: As per the given information: Estimated direct-labor hours - 32,000 direct-labor hours Estimated…
Q: A company estimates its manufacturing overhead will be $1,080,000 for the next year. What is the…
A: Activity based costing with the help of cost drivers, allocates overheads to cost pools before…
Q: The Production Department of Hruska Corporation has submitted the following forecast of units to be…
A: Variable manufacturing overhead refers to the indirect manufacturing costs. This cost fluctuates…
Q: The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated…
A: Predetermined overhead rate = Estimated overhead cost / Machine hours
Q: Thomlin Company forecasts that total overhead for the current year will be $15,210,000 with 169,000…
A: Predetermined overhead rate = Total estimated overhead costs / total estimated machine hours =…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: While manufacturing a product, there are two types costs which are incurred in the manufacturing…
Q: Harris Fabrics computes Its plantwide predetermined overhead rate annually on the basis of direct…
A: Plantwide predetermined overhead rate = Estimated total manufacturing overheads / Estimated total…
Q: A company estimates that it has $400,000 in variable overhead costs annually and $265,000 in fixed…
A: Here in this question, we are required to calculate the predetermine overhead rate. Predetermine…
Q: Fanning Corporation estimated its overhead costs would be $22,100 per month except for January when…
A: Cost allocation: Cost allocation is a process of assigning or allocating indirect cost to each and…
Q: The Thomlin Company forecasts that total overhead for the current year will be $11,778,000 with…
A: Predetermined overhead rate = Estimated overhead/ Estimated total machine hours = $11,778,000 /…
Q: Bagley Corporation expects to incur $225,000 of factory overhead and $600,000 of general and…
A: Expected Direct labor hours = Expected Direct labor costs / Direct labor costs per hour =…
Q: The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated…
A: Predetermined factory overhead rate = Overhead cost / Direct labor hours
Q: The Janesky Company has collected data on the manufacture of 6,071 robot grippers last month. The…
A: The aim of the company will be to increase the profits of the company. The profit of the company can…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: The Production Department of Hruska Corporation has submitted the following forecast of units to be…
A: Budgeting - Budgeting is very useful method of estimating revenue and expense for an organization.…
Q: The Thomlin Company forecasts that total overhead for the current year will be $11,628,000 with…
A: Overhead costs refers to all indirect expenses required to run a business. It helps in determining…
Q: The Production Department of Hruska Corporation has submitted the following forecast of units to be…
A: The total cost of production consists of variable and manufacturing cost.
Q: A company estimates its manufacturing overhead will be $720,711 for the next year. What is the…
A: Overhead allocation is a method for allocating indirect expenses. Traditional methods,…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: plantwide predetermined overhead rate formula:plant wide predetermined overhead rate = fixed…
Q: The Production Department of Hruska Corporation has submitted the following forecast of units to be…
A: Direct Labor Cost - It is cost of labor which are divided into two parts i.e Direct Labor cost and…
Q: The Production Department of Hruska Corporation has submitted the following forecast of units to be…
A: Budgets are the estimates for future period. Direct labour cost budget shows how much labour cost…
Q: Overhead is calculated by Amanzi Company based on Direct Labor hours. Amanzi forecasts Overhead to…
A: Formula: Predetermined overhead rate Estimated overhead Direct labor hour
Q: The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated…
A: Predetermined overhead rate = Estimated overhead cost / Direct material cost
Q: CBC Inc is currently operating at 80% capacity. Its machine and factory has a maximum production…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: The Thomlin Company forecasts that total overhead for the current year will be $11,089,000 with…
A: Under or over applied overhead rate is to be determined based on predetermined overhead rate.…
Q: The Thomlin Company forecasts that total overhead for the current year will be $11,764,000 with…
A: Variance is the difference between the expected value and the actual results. It can be calculated…
Q: At the beginning of the year, a company predicts total direct materials costs of $900,000 and total…
A: Predetermined overhead rate: It can be defined as an allocation rate that is used by the business in…
Q: Golf Corporation estimates that its production for the coming year will be 25,000 units, which is…
A: The predetermined overhead rate can be calculated by dividing the total estimated overhead by…
Q: Next year, Manny’s Mowing Service expects to use 31,200 direct labor hours and have a total…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: You estimate that total overhead for the current year will be $15,000,000 with 300,000 total machine…
A: Applied Overhead:-Applied overhead is more than actual overhead is known as Over applied Overhead…
Q: A company expected its annual overhead costs to be $1,000,000 and direct labor costs to be $500,000.…
A: Predetermined overhead rate: Predetermined overhead rate is a measure used to allocate the…
Q: Fanning Corporation estimated its overhead costs would be $22,100 per month except for January when…
A: A budget is an estimation or a financial plan for a defined period, usually one year. It may also…
Q: Muspest Supplies is currently evaluating the cost of manufacturing some of the components utilised…
A: Relevant cost is the cost which is relevant in decision making. Total number of parts per month…
Q: The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: If annual overhead costs are expected to be $ 784000 and direct labor costs are expected to be $…
A: Predetermined overhead rate = Expected annual overhead costs / Expected direct labor costs =…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: A predetermined overhead rate is an allocation rate that is given to cost items for a certain…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…
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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?A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600Queen 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?
- 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?Baldwin 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.During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
- Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?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.
- 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?Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt incurred the following manufacturing costs: direct materials, 28,019.00; direct labor, 15,276.75; and applied factory overhead, 9,854.50. The following data pertain to these costs: The overhead application rates are 4 per direct labor hour for Dept. 1 and 175% of direct labor cost for Dept. 2. Nutt had no beginning work in process for August. Job 8958, which cost 14,190.18 to manufacture, was completed in July and was sold on account in August for 19,000. The job cost sheet for this job is shown on page 103. Of the jobs begun in August, Job 8961 was completed and sold on account for 24,000, Jobs 8962 and 8964 were completed but not sold, and Job 8963 was still in process. As cost accountant for this company, you have been asked to prepare job cost sheets for each of the four jobs started in August. Review the printed worksheet called JOB that follows these requirements.Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours