Munoz Corporation estimated its overhead costs would be $22,800 per month except for January when it pays the $179,010 annualinsurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $201.810 ($179,010 +$22,800). The company expected to use 7.400 direct labor hours per month except during July, August, and September when thecompany expected 9,900 hours of direct labor each month to build inventories for high demand that normally occurs during theChristmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,700 units ofproduct in each month except July, August, and September, in which it produced 4,950 units each month. Direct labor costs were$24.80 per unit, and direct materials costs were $11.50 per unit.Requireda. Calculate a predetermined overhead rate based on direct labor hours.b. Determine the total allocated overhead cost for January, March, and August.c. Determine the cost per unit of product for January, March, and August.d. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $21.60 per unit.Complete this question by entering your answers in the tabs below.Reg AReq B to Db. Determine the total allocated overhead cost for January, March, and August.c. Determine the cost per unit of product for January, March, and August.d. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $21.60 per unit.Note: Do not round intermediate calculations. Round "Cost per unit" and "Selling price per unit" to 2 decimal places. Roundyour total allocated overhead cost to nearest whole dollar.b. Total allocated overhead costc. Cost per unitd. Selling price per unitJanuaryMarch< Req AAugustHe to >Show less A

The application of overhead entails the allocation of indirect production expenses to a company's…

Muñoz Corporation estimated its overhead costs would be $22,800 per mon insurance premium on the manufacturing facility. Accordingly, the January ov $22,800). The company expected to use 7,400 direct labor hours per month company expected 9,900 hours of direct labor each month to build inventori Christmas season. The company's actual direct labor hours were the same a product in each month except July, August, and September, in which it produ $24.80 per unit, and direct materials costs were $11.50 per unit.

Muñoz Corporation estimated its overhead costs would be $22,800 per mon insurance premium on the manufacturing facility. Accordingly, the January ov $22,800). The company expected to use 7,400 direct labor hours per month company expected 9,900 hours of direct labor each month to build inventori Christmas season. The company's actual direct labor hours were the same a product in each month except July, August, and September, in which it produ $24.80 per unit, and direct materials costs were $11.50 per unit.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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.
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
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?
Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $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?
Peggy Nolan earns 20 per hour for up to 300 units of production per day. If she produces more than 300 units per day, she will receive an additional piece rate of .5333 per unit. Assume that her hours worked and pieces finished for the week just ended were as follows: a. Determine Nolans earnings for each day and for the week. (Round piece-rate computations to the nearest whole dollar.) b. Prepare the journal entry to distribute the payroll, assuming that any make-up guarantees are charged to Factory Overhead.
Fanning Corporation estimated its overhead costs would be $22,100 per month except for January when it pays the $207,120 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $229,220 ($207,120 + $22,100). The company expected to use 7,700 direct labor hours per month except during July, August, and September when the company expected 9,700 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company’s actual direct labor hours were the same as the estimated hours. The company made 3,850 units of product in each month except July, August, and September, in which it produced 4,850 units each month. Direct labor costs were $23.10 per unit, and direct materials costs were $10.30 per unit.Required Calculate a predetermined overhead rate based on direct labor hours. Determine the total allocated overhead cost for January, March, and August. Determine the…
Fanning Corporation estimated its overhead costs would be $22,100 per month except for January when it pays the $207,120 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $229,220 ($207,120 + $22,100). The company expected to use 7,700 direct labor hours per month except during July, August, and September when the company expected 9,700 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company’s actual direct labor hours were the same as the estimated hours. The company made 3,850 units of product in each month except July, August, and September, in which it produced 4,850 units each month. Direct labor costs were $23.10 per unit, and direct materials costs were $10.30 per unit. Required a.Calculate a predetermined overhead rate based on direct labor hours. b.Determine the total allocated overhead cost for January, March, and August. c.Determine…
Gibson Corporation estimated its overhead costs would be $23,600 per month except for January when it pays the $135,240 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $158,840 ($135,240+ $23,600). The company expected to use 7,500 direct labor hours per month except during July, August, and September when the company expected 9,200 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,750 units of product in each month except July, August, and September, in which it produced 4,600 units each month. Direct labor costs were $23.40 per unit, and direct materials costs were $11.40 per unit. Required a. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January, March, and August c. Determine…