Thornton, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation Supplies Materials handling Property taxes Production setup $191,300 20,700 33,100 13,300 19,300 44,400 39,700 392,200 Rent Maintenance Supervisory salaries The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 209,000 and for machines were 130,000. Required a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 145,000. (Do not round intermediate calculations.)
Thornton, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation Supplies Materials handling Property taxes Production setup $191,300 20,700 33,100 13,300 19,300 44,400 39,700 392,200 Rent Maintenance Supervisory salaries The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 209,000 and for machines were 130,000. Required a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 145,000. (Do not round intermediate calculations.)
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 12PB: The following data summarize the operations during the year. Prepare a journal entry for each...
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