Please I want to learn how to make these problems with a good explanation. One of those there is the possible answer.Thank you The Lincoln Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predeterminedoverhead rates are based on direct labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, thecompany made the following estimates:Estimates:Dept. B40,00048,00010,0008,000Dept. ADirect labor cost (DLC)Manufacturing OverheadDirect labor hoursMachine hours (MHs)$$ 62,000 $2493,000 $8,0003,000Actual results:Job #23DLC$300 $200MHs1025Job #30DLC450 $550MHs30459 Total OH costs allocated to Job #23$ 720$ 510$ 450$ 600А.В.С.D.E. None of the above10 The Harrisburg Corporation sells a component for an industrial machine.Selling priceVariable expense2$6.00 /unit$ 2.00 /unitCurrent Sales10,000 units per monthHarrisburg found that the current net operating income is equal to 15% of current sales.What is Harrisburg's fixed costs per month?A$31,000В.$40,000$11,000С.D.$9,000E. None of the above%24

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The Lincoln Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rates are based on direct labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: Estimates: Direct labor cost (DLC) Manufacturing Overhead Direct labor hours Dept. A $62,000 2$ 93,000 $ 8,000 3,000 Dept. B 40,000 48,000 10,000 8,000 Machine hours (MHs) Actual results: Job #23 DLC %24 300 $ 200 MHs 10 25 Job #30 DLC 24 450 $ 550 MHs 30 45 9 Total OH costs allocated to Job #23 $ 720 $ 510 $ 450 $ 600 A. В. С. D. E. None of the above 10 The Harrisburg Corporation sells a component for an industrial machine. Selling price Variable expense 2$ 6.00 /unit 2$ 2.00 /unit Current Sales 10,000 units per month Harrisburg found that the current net operating income is equal to 15% of current sales. What is Harrisburg's fixed costs per month? $31,000 В. $40,000 $11,000 С. D. $9,000 E. None of the above

The Lincoln Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rates are based on direct labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: Estimates: Direct labor cost (DLC) Manufacturing Overhead Direct labor hours Dept. A $62,000 2$ 93,000 $ 8,000 3,000 Dept. B 40,000 48,000 10,000 8,000 Machine hours (MHs) Actual results: Job #23 DLC %24 300 $ 200 MHs 10 25 Job #30 DLC 24 450 $ 550 MHs 30 45 9 Total OH costs allocated to Job #23 $ 720 $ 510 $ 450 $ 600 A. В. С. D. E. None of the above 10 The Harrisburg Corporation sells a component for an industrial machine. Selling price Variable expense 2$ 6.00 /unit 2$ 2.00 /unit Current Sales 10,000 units per month Harrisburg found that the current net operating income is equal to 15% of current sales. What is Harrisburg's fixed costs per month? $31,000 В. $40,000 $11,000 С. D. $9,000 E. None of the above

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....

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Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?
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?
A company has the following information relating to its production costs: Compute the actual and applied overhead using the companys predetermined overhead rate of $23.92 per machine hour. Was the overhead over applied or under applied, and by how much?
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.
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. $68,600
The following information, taken from the books of Herman Brothers Manufacturing represents the operations for January: The job cost system is used, and the February cost sheet for Job M45 shows the following: The following actual information was accumulated during February: Required: 1. Using the January data, ascertain the predetermined factory overhead rates to be used during February, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Prepare a schedule showing the total production cost of Job M45 under each method of applying factory overhead. 3. Prepare the entries to record the following for February operations: a. The liability for total factory overhead. b. Distribution of factory overhead to the departments. c. Application of factory overhead to the work in process in each department, using direct labor hours. (Use the predetermined rate calculated in Requirement 1.) d. Closing of the applied factory overhead accounts. e. Recording under- and overapplied factory overhead and closing the actual factory overhead accounts.
Overhead application rate Creole Manufacturing Inc. uses a job order cost system and standard costs. It manufactures one product, whose standard cost follows: The standards are based on normal capacity of 2,400 direct labor hours. Actual activity for October follows: Required: 1. Compute the variable and fixed factory overhead rates per unit. 2. Compute the variable and fixed overhead rates per direct labor hour. 3. Determine the total fixed factory overhead based on normal capacity.
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?
Determining job costcalculation of predetermined rate for applying overhead by direct labor cost and direct labor hour methods Beemer Products Inc. has its factory divided into three departments, with individual factory overhead rates for each department. In each department, all the operations are sufficiently alike for the department to be regarded as a cost center. The estimated monthly factory overhead for the departments is as follows: Forming, 64,000; Shaping, 36,000; and Finishing, 10,080. The estimated production data include the following: The job cost ledger shows the following data for X6, which was completed during the month: Required: Determine the cost of X6. Assume that the factory overhead is applied to production orders, based on the following: 1. Direct labor cost 2. Direct labor hours (Hint: You must first determine overhead rates for each department, rounding rates to the nearest cent.)
A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far: Using the information provided. A. What is the balance in work in process? B. What Is the balance in the finished goods inventory? C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?
Overhead application rate Roll Tide Manufacturing Inc. uses a job order cost system and standard costs. It manufactures one product, whose standard cost follows: The standards are based on normal capacity of 2,700 direct labor hours. Actual activity for March follows: Required: 1. Compute the variable and fixed factory overhead rates per unit. 2. Compute the variable and fixed overhead rates per direct labor hour. 3. Determine the total fixed factory overhead based on normal capacity.
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?