The records of Family Manufacturing show the following information:Estimated manufacturing overheadEstimated machine hoursActual machine hours workedActual costs incurred:Indirect materialsIndirect laborUtilitiesInsuranceRent$690,00046,00050,000Oc. $648,000.Od. $690,000.$170,000230,000120,000100,00080,0001 more notificationThe company uses a predetermined overhead rate to apply overhead. Assuming that overhead is applied based on an overhead rate calculated using machine hours as the base in the highly automated production environment,applied manufacturing overhead isOa. $700,000.Ob. $750,000. Bear Claw Industries has two departments. The Molding Department applies overhead based on machine hours, while the Assembly Department applies overhead bas 1 more notificationestimates at the beginning of the current year:Manufacturing overhead costMachine hoursDirect labor hoursDirect materialsDirect laborDirect labor hoursMachine hoursMolding$700,00010,00012,000The following information was available for Job No. 7-29, which was started and completed during August:Ob. $70.Oc. $50.Od. $100.Job No. 7-29Molding$3,500$9,000900500Assembly$400,0004,00016,000The predetermined overhead rate for the Molding Department isOa. $83.Assembly$7,500$12,5001,250400

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Description: The records of Family Manufacturing show the following information:Estimated manufacturing overheadEstimated machine hoursActual machine hours workedActual costs incurred:Indirect materialsIndirect laborUtilitiesInsuranceRent$690,00046,00050,000Oc.

Answer:- Overhead meaning:- An recurring cost of running a business is generally referred to in…

Business

Accounting

The records of Family Manufacturing show the following information: Estimated manufacturing overhead Estimated machine hours Actual machine hours worked Actual costs incurred: Indirect materials Indirect labor Utilities Insurance Rent $690,000 46,000 50,000 $170,000 230,000 120,000 100,000 80,000 1 more notification The company uses a predetermined overhead rate to apply overhead. Assuming that overhead is applied based on an overhead rate calculated using machine hours as the base in the highly automated production environment, applied manufacturing overhead is Oa. $700,000. Ob. $750,000. Oc. $648,000. Od. $690,000.

The records of Family Manufacturing show the following information: Estimated manufacturing overhead Estimated machine hours Actual machine hours worked Actual costs incurred: Indirect materials Indirect labor Utilities Insurance Rent $690,000 46,000 50,000 $170,000 230,000 120,000 100,000 80,000 1 more notification The company uses a predetermined overhead rate to apply overhead. Assuming that overhead is applied based on an overhead rate calculated using machine hours as the base in the highly automated production environment, applied manufacturing overhead is Oa. $700,000. Ob. $750,000. Oc. $648,000. Od. $690,000.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 13PA: Selected information from Skylar Studios shows the following: Prepare journal entries to record the...

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Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.
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
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?
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.
Selected information from Hernandez Corporation shows the following: Prepare journal entries to record the following: raw material purchased direct labor incurred depreciation expense (hint: this is part of manufacturing overhead) raw materials used overhead applied on the basis of $0.50 per machine hour the transfer from department 1 to department 2
The following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100
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?
JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Hilburn Manufacturing Corporation had the following transactions for its job order costing operation. Prepare general journal entries to record these transactions. Jan.1 Purchased materials on account, 17,000. 15 Issued direct materials to Job No. 104, 11,000. 20 Issued indirect materials (factory overhead), 5,000. 31 Incurred direct labor, Job No. 104, 9,000. 31 Incurred indirect labor (factory overhead), 2,500. 31 Incurred other indirect costs (factory overhead; credit Accounts Payable), 2,000.
JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Rich Manufacturing Corporation had the following transactions for its job order costing operation. Prepare general journal entries to record these transactions. Jan. 1 Purchased materials on account, 22,000. 15 Issued direct materials to Job No. 1, 18,000. 20 Issued indirect materials (factory overhead), 3,000. 31 Incurred direct labor, Job No. 1, 11,000. 31 Incurred indirect labor (factory overhead), 4,000. 31 Incurred other indirect costs (factory overhead; credit Accounts Payable), 1,500.
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.
Inez has the following information relating to Job AA5. Direct material cost was $200,000, direct labor was $36,550, and overhead applied on the basis of direct labor hours was $73,100. What was the predetermined overhead rate using the labor rate of $17 per hour?
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?