The predetermined overhead rate is $50 per machine hour, underapplied overhead is$5,000, and the actual amount of machine hours is 2,000. What is the actual amountof total manufacturing overhead incurred during the period?a. $105,000b. $95,000c. $150,000d. $110,000

The predetermined overhead rate is $50 per machine hour, underapplied overhead is$5,000, and the actual amount of machine hours is 2,000. What is the actual amountof total manufacturing overhead incurred during the period?a. $105,000b. $95,000c. $150,000d. $110,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...

See similar textbooks

Related questions

Q: Manufacturing overhead was estimated to be OMR 250,000 for the year along with 20,000 direct labor…

A: Predetermined overhead rate = Estimated overhead expenses /estimated labour hours Applied overheads…

Q: Manufacturing overhead was estimated to be OMR 250,000 for the year along with 20,000 direct labor…

A: Overhead means the cost incurred indirectly for the production of goods.

Q: Manufacturing overhead was estimated to be OMR 400,000 for the year along with estimated 20,000…

A: Manufacturing overhead includes all manufacturing costs related to the manufacturing operations.

Q: Seved Marutechring ovetheaed was estimated to be $40Q,00 for the year along with 20,000 direct labor…

A: Predetermined overhead rate = estimated total manufacturing overhead cost / direct labor-hours =…

Q: If estimated production overhead in the printing department is $120,000 and actual overhead is…

A: Pre-determined overhead rate refers to calculation of overhead rate based on estimated cost and the…

Q: Coleridge Company estimates that its production workers will work 143,000 direct labor hours during…

A: Given, Estimated overhead = $1,287,000 Estimated direct labor hours = $143,000

Q: Manufacturing overhead was estimated to be OMR 415,000 for the year along with estimated 20,000…

A: Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor hours = OMR…

Q: Steeler Towel Company estimates its overhead to be $522,000. It expects to have 174,000 direct labor…

Q: A company estimated 149,795 direct labor hours and $643,490 in overhead. The actual overhead was…

A: Predetermined Overhead Rate:- It is the rate calculated by dividing the manufacturing cost with the…

Q: Manufacturing overhead was estimated to be OMR 250,000 for the year along with 20,000 direct labor…

A: Predetermined overhead rate = Estimated overhead costs/ Estimated direct labour hours

Q: Marquis Company estimates that annual manufacturing overhead costs will be $920,000. Estimated…

A: Calculate the overhead rate per direct labor cost.

Q: Manufacturing overhead was estimated to be OMR 415,000 for the year along with estimated 20,000…

A: PLEASE LIKE THE ANSWER YOUR RESPONSE MATTERS THE CORRECT ANSWER IS OPTION( E) OMR 400,000

Q: Manufacturing overhead was estimated to be OMR 400,000 for the year along with estimated 20,000…

A: Manufacturing Overhead can be termed as a fixed cost that is incurred as a result of normal…

Q: Liberty Company estimates total overhead costs to be $900,000 and will apply overhead to units…

A: Predetermined overhead rate= Estimated Overhead/Estimated Machine hours Note: For determining…

Q: Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: A company calculated the predetermined overhead based on an estimated overhead of $70,000, and the…

Q: Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year…

A: a. Calculate the overhead application rate for the year:

Q: Manufacturing overhead was estimated to be OMR 415,000 for the year along with estimated 20,000…

A: Predetermined overhead rate = estimated manufacturing overhead / estimated direct labor hours…

Q: Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) estimated…

A: Predetermined overhead rate = Overhead applied / Actual MHs Predetermined overhead rate = $432,000 /…

Q: Manufacturing overhead was estimated to be OMR 200,000 for the year along with 20,000 direct labor…

A: Underapplied overheads occurred when the applied overheads are less than the actual overheads.

Q: A company estimated the manufacturing overhead costs for 2018 at $420,000. The total estimated…

A: Predetermined overhead rate is calculated by dividing the estimated budgeted overhead by total…

Q: Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: applies overhead based on machine hours. At the beginning of 20x1, the company estimated that…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The Ruqaiyah Company estimated Department A's overhead at P255,000 for the period based on an…

A: Overhead rate = estimated overhead / estimated direct labor hours = P255,000 / 100,000 direct labor…

Q: Amanzi Company applies Overhead based on Direct Labour hours. At The beginning of the year, Amanzi…

A: The Predetermined overhead rate is usually the calculated at the start of the period by dividing the…

Q: Manufacturing overhead was estimated to be OMR 400,000 for the year along with 20,000 direct labor…

A: Job costing means where actual direct cost is included in specific cost and overhead is applied on…

Q: A company estimated 120,000 direct labor hours and $1,200,000 in overhead. The actual overhead was…

A: Predetermined overhead rate = Estimated overhead cost / Estimated direct labor hours Overhead…

Q: Manufacturing overhead was estimated to be OMR 400,000 for the year along with estimated 20,000…

A: Pre-determined overhead rate = Total Estimated Manufacturing overheadEstimated labor hours

Q: Amanzi Company applies Overhead based on Direct Labour hours. At The beginning of the year, Amanzi…

A: Formula: Predetermined overhead rate = Estimated overhead / Direct labor hour

Q: A company estimated 80,000 direct labor hours and $640,000 in overhead. The actual overhead was…

A: Answer) Calculation of Predetermined Overhead rate Predetermined overhead rate = Budgeted Overheads/…

Q: Manufacturing overhead was estimated to be OMR 400,000 for the year along with estimated 20,000…

A: Predetermined overhead rate = Estimated Manufacturing overhead / Direct labor hours = OMR 400000 /…

Q: Calculate the amount of overhead allocated to the products of a company that has a predetermined…

A: Amount of overhead allocated to the product = Actual machine-hours x Predetermined overhead rate…

Q: Your Company uses a predetermined overhead rate based on direct labor hours. The POR is $10 per…

A: If actual overhead is more than overhead that applied then it results to underapplied overhead

Q: Manufacturing overhead was estimated to be OMR 415,000 for the year along with estimated 20,000…

Q: 3. Flagler Company allocates overhead based on machine hours. They estimated overhead costs for the…

A: Compute the overhead application rate.

Q: Manufacturing overhead was estimated to be OMR 415,000 for the year along with estimated 20,000…

A: Overhead are those expenses of the entity/firm which it made after getting the prime cost of the…

Q: Manufacturing overhead was estimated to be OMR 400,000 for the year along with estimated 20,000…

A: Predetermined rate = Estimated manufacturing overhead/Estimated hours

Q: Marquis Company estimates that annual manufacturing overhead costs will be $894,600. Estimated…

A: Manufacturing Overhead: Manufacturing overhead is also known as the Indirect Costs. Those are the…

Q: A Company estimates its overhead to be $375,000 It expects to have 125,000 direct labor hours…

A: Predetermined overhead rate = estimated manufacturing overhead cost/ Allocation base

Q: A company estimates the following manufacturing costs for the next period: direct labor, $540,000;…

A: Predetermined overhead rate: Predetermined overhead rate is calculated befor the period begins. This…

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: Manufacturing overhead was estimated to be OMR 415,000 for the year along with estimated 20,000…

A: The manufacturing overhead are the indirect costs which are not traceable to a product or a job…

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: Manufacturing overhead was ebtimated to be OMR 415,000 for the year along with estimated 20,000…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: overhead was OMR 415,000, and actual labor hours were 21,000. The :amount debited to the…

A: Every organization prepares a future estimate of its purchases and sales so that it can compare the…

Q: Makkah Equipment Co. sells machines and has the following information for the year: Actual Estimated…

A: Answer Actual overhead cost = OMR 2,400,000

Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

The predetermined overhead rate is $50 per machine hour, underapplied overhead is
$5,000, and the actual amount of machine hours is 2,000. What is the actual amount
of total manufacturing overhead incurred during the period?
a. $105,000
b. $95,000
c. $150,000
d. $110,000

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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
A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was $445,000, and there were 50,500 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
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
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
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 hours
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?
The actual overhead for a company is $73,175. Overhead was based on 4,500 machine hours and was $3,325 over applied for the year. What is the overhead application rate per direct labor hour? What is the journal entry to dispose of the under applied overhead?
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
If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has 100,000 machine hours, would there be an under applied or over 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?