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(a) Calculate the predetermined overhead rate for 2022, assuming Cullumber Manufacturing estimates total manufacturing overhead costs of $1,580,000, direct labour costs of $753,400, and direct labour hours of 20,100 for the year. (Round answer to 2 decimal places, eg. 21.11.)

(a) Calculate the predetermined overhead rate for 2022, assuming Cullumber Manufacturing estimates total manufacturing overhead costs of $1,580,000, direct labour costs of $753,400, and direct labour hours of 20,100 for the year. (Round answer to 2 decimal places, eg. 21.11.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cullumber Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2022, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $30,600, direct labour $15,300, and manufacturing overhead $20,000. As at January 1, Job No. 49 had been completed at a cost of $121,000 and was part of finished goods inventoly. There was a $25,800 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $152,600 and $198,200, respectively. The following additional events occurred during the month: 1. Cullumber purchased additional raw materials of $106,000 on account. 2. It incurred factory labour costs of $76,000. 3. It incurred manufacturing overhead costs as follows: depreciation on equipment $14,100, and various other manufacturing overhead costs on account $22,800. 4. It assigned direct materials and direct labour to jobs as follows:
Transcribed Image Text:Cullumber Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2022, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $30,600, direct labour $15,300, and manufacturing overhead $20,000. As at January 1, Job No. 49 had been completed at a cost of $121,000 and was part of finished goods inventoly. There was a $25,800 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $152,600 and $198,200, respectively. The following additional events occurred during the month: 1. Cullumber purchased additional raw materials of $106,000 on account. 2. It incurred factory labour costs of $76,000. 3. It incurred manufacturing overhead costs as follows: depreciation on equipment $14,100, and various other manufacturing overhead costs on account $22,800. 4. It assigned direct materials and direct labour to jobs as follows:
Job No. 50 (a) 51 52 Direct Materials $12,700 42,700 35,500 Direct Labour $7,100 Overhead rate 28,200 5. It assigned indirect materials of $17.200 and indirect labour of $18,500. 22,200 Calculate the predetermined overhead rate for 2022, assuming Cullumber Manufacturing estimates total manufacturing overhead costs of $1,580,000, direct labour costs of $753,400, and direct labour hours of 20,100 for the year. (Round answer to 2 decimal places, e.g. 21.11.) %
Transcribed Image Text:Job No. 50 (a) 51 52 Direct Materials $12,700 42,700 35,500 Direct Labour $7,100 Overhead rate 28,200 5. It assigned indirect materials of $17.200 and indirect labour of $18,500. 22,200 Calculate the predetermined overhead rate for 2022, assuming Cullumber Manufacturing estimates total manufacturing overhead costs of $1,580,000, direct labour costs of $753,400, and direct labour hours of 20,100 for the year. (Round answer to 2 decimal places, e.g. 21.11.) %
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