Managerial Accounting - With Access
3rd Edition
ISBN: 9781259847424
Author: Whitecotton
Publisher: MCG
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Chapter 2, Problem 5MC
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.
To calculate:
The Over or Under Applied overhead cost
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32.If actual overhead is greater than applied overhead, which of the following will be true? Upon closing,
a. Overhead is underapplied; COGS is credited
b. Overhead is underapplied; COGS is debited
c. Overhead is overapplied; COGS is debited
d. Overhead is overapplied; COGS is credited
If the actual overhead costs incurred are in excess of the applied overhead costs, the difference is called what?
a) Predetermined overhead rate
b) Underapplied overhead
c) Overapplied overhead
d) Gross margin
Identify under or over allocation from the following information :i. Actual Overhead tk 2,000, allocated overhead tk 1,500ii. Allocated Overhead 6,000 ,actual overhead 5,200iii. Actual Overhead 10,000, allocated overhead tk 18,000
Chapter 2 Solutions
Managerial Accounting - With Access
Ch. 2 - What is the difference between job order and...Ch. 2 - What types of companies are likely to use job...Ch. 2 - What types companies are likely to use process...Ch. 2 - Many service industries use job order costing to...Ch. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - Prob. 19QCh. 2 - Prob. 20QCh. 2 - Prob. 21QCh. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MCCh. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 6MCCh. 2 - Prob. 7MCCh. 2 - Applied overhead costs are recorded a. On the left...Ch. 2 - Prob. 9MCCh. 2 - Prob. 10MCCh. 2 - Identifying Companies That Use Job Order versus...Ch. 2 - Prob. 2MECh. 2 - Prob. 3MECh. 2 - Prob. 4MECh. 2 - Prob. 5MECh. 2 - Prob. 6MECh. 2 - Prob. 7MECh. 2 - Prob. 8MECh. 2 - Prob. 9MECh. 2 - Prob. 10MECh. 2 - Prob. 11MECh. 2 - Calculating Over- or Underapplied Overhead Costs...Ch. 2 - Prob. 13MECh. 2 - Prob. 14MECh. 2 - Prob. 15MECh. 2 - Calculating Direct Materials Used in Production...Ch. 2 - Calculating Missing Amounts and Cost or Goods...Ch. 2 - Prob. 19MECh. 2 - Prob. 1ECh. 2 - Preparing Journal Entries Refer to the information...Ch. 2 - Prob. 3ECh. 2 - Preparing Journal Entries Refer to the information...Ch. 2 - Prob. 5ECh. 2 - Finding Unknown Values in the Cost of Goods...Ch. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Calculating the Cost of Finished and Unfinished...Ch. 2 - Computing Overhead Rate and Billing Rate for...Ch. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 21ECh. 2 - Preparing Journal Entries Floyds Auto Repair Shop...Ch. 2 - Applying Job Order Costing in a Service Setting...Ch. 2 - Prob. 24ECh. 2 - Prob. 1.1GAPCh. 2 - Prob. 1.2GAPCh. 2 - Prob. 1.3GAPCh. 2 - Prob. 1.4GAPCh. 2 - Prob. 1.5GAPCh. 2 - Preparing Journal Entries Refer to the information...Ch. 2 - Prob. 3.1GAPCh. 2 - Prob. 3.2GAPCh. 2 - Prob. 3.3GAPCh. 2 - Prob. 3.4GAPCh. 2 - Prob. 3.5GAPCh. 2 - Prob. 4.1GAPCh. 2 - Prob. 4.2GAPCh. 2 - Prob. 4.3GAPCh. 2 - Prob. 5.1GAPCh. 2 - Prob. 5.2GAPCh. 2 - Recording Manufacturing Costs and Analyzing...Ch. 2 - Prob. 5.4GAPCh. 2 - Prob. 6GAPCh. 2 - Prob. 7.1GAPCh. 2 - Prob. 7.2GAPCh. 2 - Prob. 7.3GAPCh. 2 - Prob. 7.4GAPCh. 2 - Prob. 7.5GAPCh. 2 - Prob. 8.1GAPCh. 2 - Prob. 8.2GAPCh. 2 - Prob. 8.3GAPCh. 2 - Prob. 8.4GAPCh. 2 - Prob. 8.5GAPCh. 2 - Prob. 1.1GBPCh. 2 - Prob. 1.2GBPCh. 2 - Prob. 1.3GBPCh. 2 - Prob. 1.4GBPCh. 2 - Prob. 1.5GBPCh. 2 - Prob. 2GBPCh. 2 - Prob. 3.1GBPCh. 2 - Prob. 3.2GBPCh. 2 - Prob. 3.3GBPCh. 2 - Prob. 3.4GBPCh. 2 - Prob. 3.5GBPCh. 2 - Prob. 4.1GBPCh. 2 - Prob. 4.2GBPCh. 2 - Prob. 4.3GBPCh. 2 - Recording Manufacturing Costs and Analyzing...Ch. 2 - Recording Manufacturing Costs and Analyzing...Ch. 2 - Recording Manufacturing Costs and Analyzing...Ch. 2 - Prob. 5.4GBPCh. 2 - Prob. 6GBPCh. 2 - Prob. 7.1GBPCh. 2 - Prob. 7.2GBPCh. 2 - Prob. 7.3GBPCh. 2 - Prob. 7.4GBPCh. 2 - Prob. 7.5GBPCh. 2 - Prob. 8.1GBPCh. 2 - Prob. 8.2GBPCh. 2 - Prob. 8.3GBPCh. 2 - Prob. 8.4GBPCh. 2 - Prob. 8.5GBP
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- The "x" in the overhead cost equation, y = $5.50x + $92,000, represents which of the following? total overhead costs. the variable costs. total fixed costs. the cost driver in units.arrow_forward4. Overheads applied are calculated by: Select one: A. Cost driver divided by the OAR B. OAR times the estimated cost driver activity C. OAR times the actual cost driver activity D. Budgeted production overheads divided by the budgeted cost driver activity 5. Under-allocated manufacturing overhead costs are always the result of which of the following situations? Select one: A. Estimated overhead costs are greater than actual overhead costs. B. Actual overhead costs are less than applied overhead costs. C. Actual overhead costs are greater than estimated overhead costs. D. Applied overhead costs are less than actual overhead costs. 6. The centrepiece of a job-costing system is the: Select one: a. materials requisition form b. job-cost sheet c. labour time ticket d. budgeted overhead rate 7.Black Company uses predetermined overhead rates to apply manufacturing overheads to jobs. The predetermined overhead rates are based on machine hours in Department A and direct labour cost in…arrow_forward1. What is the activity rate for Activity 1, Activity 2, and Activity 3? (figures only, round off 2 decimal places). 2.What is the overhead cost attributed to Product A and Product B?arrow_forward
- 37.Applied overhead consists of which of the following? a. actual activity times predetermined overhead rate b. estimated activity times predetermined overhead rate c. actual activity times actual overhead rate d. estimated activity times actual overhead ratearrow_forward1.Based on the data above. What is the cost of goods manufactured during the current year? 2.Based on the data above. What is the over or under application of overhead?arrow_forwardOverhead/underapplied = Applied overhead- actual overhead So $400 000 - $500 000 = (100 000) . So underapplied overhead was of $100 000 Required: Show your calculation to prorate the amount calculated in (a) above, to the three manufacturing accounts. $$@@#%&*([[/×+!!#-:,,((=÷@#"*([>/÷++@"&(arrow_forward
- a) What amount of prime costs were incurred during 20x10? b) What was the predetermined overhead rate for 20x10? c) Calculate the Cost of Goods Manufactured for 20x10. d) Calculate the Cost of Goods Sold for 20x10. e) What balance exists at the end of 20x10 in the manufacturing overhead account (before the over/underapplied overhead is reallocated).arrow_forwardOverhead costs are underapplied if the amount applied to Work in Process is: a . equal to actual overhead incurred . b . equal to estimated overhead . c . greater than estimated overhead . d. None of the given answer is correct e. greater than actual overhead incurred.arrow_forward18) In traditional approach, overheads are absorbed based on: a. All the options listed b. Direct labour c. Direct wages d. Machine hoursarrow_forward
- True or False. The predetermined overhead rate is an amount obtained by dividing the total overhead for the past period by the total overhead allocation base for the coming period.arrow_forwardPlease refer to the picture below for information. Kindly show the complete solution. Thank you so much. 1. Assume that Nysa has overapplied overhead of P25,000 and that this amount is material. What isthe balance in cost of goods sold after the overapplied overhead has been closed?arrow_forwardInfo in images Continued info for question 1. Compute the predetermined overhead rate for the year. Predetermined overhead rate [ ] % 2. Compute the amount of underapplied or overapplied overhead for the year. [Underapplied OR Overapplied] overhead [ ] 3. Info in image "ACC REQ3" 4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. Unadjusted cost of goods sold [ ] 5. Assume that the $38,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply the information missing below: Direct materials $8,600 Direct labor [ ] Manufacturing overhead [ ] Work in process inventory $38,000arrow_forward
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