BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

Solutions

Chapter
Section
BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

A company estimated $420,000 of factory overhead com and 16,000 direct labor hours for the period. During the period, a job was completed with $4,500 of direct materials and $3,000 of di-red labor. The direct labor rate was 515 per hour. What is the factory overhead applied to this job?
A.$2,100
B.$5,250
C.$78,750
D.$420,000

To determine

Concept Introduction:

Predetermined overhead allocation:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:

  Predetermined overhead allocation rate = Estimated Manufacturing overhead CostAllocation base 

To Calculate:

The Factory overhead cost applied to the job

Explanation

The Factory overhead cost applied to the job is calculated as follows:

Predetermined overhead allocation rate = $420,000/16000 labor hours = $26...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is a digital envelope?

Accounting Information Systems

Would the yield spread on a corporate bond over a Treasury bond with the same maturity tend to become wider or ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

How is the grapevine used in a business organization?

Foundations of Business (MindTap Course List)