32. For Knight Company, the predetermined overhead rate is 150% of direct labor cost. During the month, Knight incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead was $120,000. a. Overhead is under applied by $12,500 b. Overhead is over applied by $6,500 c. Overhead is under applied by $7,500 d. Overhead is over applied by $7,500

32. For Knight Company, the predetermined overhead rate is 150% of direct labor cost. During the month, Knight incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead was $120,000. a. Overhead is under applied by $12,500 b. Overhead is over applied by $6,500 c. Overhead is under applied by $7,500 d. Overhead is over applied by $7,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Inc. uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. The predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead cost for an estimated 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $270,000 and 11,800 direct labor-hours. Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
sawyer Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year, the company worked 57,000 actual direct labour hours and incurred $345,000 of actual manufacturing overhead cost The Company had estimated that it would work 55,000 direct labour hours during the year and incur $330, 000 of manufacturing overhead cost. The company's manufacturing overhead cost for the year was: O a. overapplied by $3,000 b . underapplied by $3,000 c. underapplied by $15,000 d. overapplied by $15,000
Mai Ling Inc., incurred the following actual overhead costs for the month of March: Account Cost Indirect materials 8,000 Indirect labor 25,000 Factory equipment depreciation 6,000 Factory building rent 7,000 Environmental compliance costs 5,000 Overhead is applied based on a predetermined rate of $10 per direct labor hour, and 6,000 direct labor hours were used during March. The balance of the T account for Manufacturing Overhead (MOH) would show which of the following? Group of answer choices $9,000 of debit balance of overallocated MOH $14,000 of debit balance of under allocated MOH $14,000 of credit balance of overallocated MOH $9,000 of credit balance of overallocated MOH
Boyle Manufacturing Co. charges factory overhead to production at 80% of direct labor cost. Jobs 842 and 843 were completed and sold in July, 20B. Total direct materials cost and prime cost for Job 842 were P9,000 and P14,000, respectively. Production cost of Job 843 amounted to P31,200 with factory overhead equal to 48% of direct materials cost. How much were the direct labor costs of Job and 843?
company's total overhead cost at various levels of activity is presented below: Month March April May June Machine Hours 5,000 4,000 6,000 8,000 Total Overhead Cost $ 38,750 $ 31,000 $ 46,500 $ 55,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) $8,000 Supervisory salaries (considered fixed) $5,000 Maintenance (considered mixed) $18,000 Total overhead cost $31,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,900 machine hours? ○ $29,600 $29,200 O $30,400 $29,900
Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $321,600. During that time, the company produced 14,600 units of the M-008 and 2,200 units of the M-123. The direct costs of production were as follows. Direct materials Direct labor M-008 M-123 $116,800 $ 88,000 116,800 44,000 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Cost Driver Number of machine-hours Number of production runs Number of inspections. Total overhead Total $204,800 160,800 Costs $156, 600 70,000 95,000 $321,600 Activity Level M-898 M-123 2,000 8,000 20 30 20 20 Total 10,000 40 50 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product if direct…
Steeler Towel Company estimates its overhead to be $483,000. It expects to have 138,000 direct labor hours costing $4,830,000 in labor and utilizing 11,500 machine hours. Calculate the predetermined overhead rate using: Round your answers to two decimal places. A. Direct labor hours $fill in the blank 1 per direct labor hour B. Direct labor dollars $fill in the blank 2 per direct labor dollar C. Machine hours $fill in the blank 3 per machine hour
Denger
am. 112.
narubhai
Assume (1) estimated fixed manufacturing overhead for the coming perlod of $217,000, (2) estimated varlable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the perlod of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: Multiple Cholce $333,204. $325.926. $321,300. $327,000.
Assume (1) estimated fixed manufacturing overhead for the coming period of $200,000, (2) estimated varlable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the perlod of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked In the coming perlod of 55,000 hours. The amount of overhead applied to production during the perlod is closest to: Multiple Choice $325,926. $304.560. $315,844. $310,000.