A company allocates overhead at a rate of 155% of direct labor cost. Actual overhead cost for the current period is $1,050,000, and direct labor cost is $590,000. Determine whether there is over- or underapplied overhead using the T-account below. Actual overhead Factory Overhead 1,050,000 914,500 Overhead applied 135,500 Underapplied overhead

A company allocates overhead at a rate of 155% of direct labor cost. Actual overhead cost for the current period is $1,050,000, and direct labor cost is $590,000. Determine whether there is over- or underapplied overhead using the T-account below. Actual overhead Factory Overhead 1,050,000 914,500 Overhead applied 135,500 Underapplied overhead

Name: A company allocates overhead at a rate of 155% of direct labor cost.
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: A company allocates overhead at a rate of 155% of direct labor cost. Actual overhead cost for the current period is $1,050,000, anddirect labor cost is $590,000.Determine whether there is over- or underapplied overhead using the T-account below.Actu

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ATZOmpany uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. X and on machine-hours in Dept. Y. At the beginning of the year, the :Corporation made the following estimates Dept. Y Dept. X 40,000 OMR 60,000 OMR Direct labor cost 60,000 OMR100,000 OMR Manufacturing overhead 15,000 6,000 Direct labor-hours 9,000 2,000 Machine-hours What predetermined overhead rates would be used in Dept. X and Dept. Y, ?respectively None of the given answers .a and OMR 4.00 200% .b and OMR 6.67 167% .c O and OMR 4.00 167% .d .e and OMR 5.00 150%
A12
Predetermined Overhead Rate, Overhead Application At the beginning of the year, Estes Company estimated the following costs: Overhead $450,000 Direct labor cost 600,000 Estes uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of September, direct labor cost was $46,300. Required: 1. Calculate the predetermined overhead rate for the year. Enter the percentage as a whole number. % of direct labor cost 2. Calculate the overhead applied to production in September.
Pharoah Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing overhead Estimated manufacturing overhead Direct labor hours incurred Direct labor hours estimated (a) Predetermined overhead rate $ $89,600 $84,000 Save for Later 4,800 Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 52.72.) 5,000 per direct labor hour
Nova Company's total overhead cost at various levels of activity are presented below Total Overhead Machine- Month Hours Cost April May June 52,000 42,000 62,000 72,000 $203,860 $181,060 $226,660 $249,460 July Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost S 50,400 67,000 63.660 181,060 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements Required: 1. Estimate how much of the $249,460 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $249,460 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Maintenance cost in July 2. Using the high-low method,…
solve
A company applies overhead at a rate of 170% of direct labor cost. Actual overhead cost for the current period is $1,050,800, and direct labor cost is $609,000. 1. Compute the under- or overapplied overhead. 2. Prepare the journal entry to close over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the under- or overapplied overhead. Total actual overhead cost Total applied overhead cost
The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the yea the Corporation made the following estimates: Direct labor cost Manufacturing overhead Direct labor-hours Machine-hours Dept. A Dept. B $60,000 $40,000 $90,000 $45,000 6,000 9,000 2,000 15,000 What predetermined overhead rates would be used in Dept. A and Dept. B, respectively?
Subject: acounting
im.3
7. At the beginning of the year, a company estimates total direct materials costs of $1,940,000 and total overhead costs of $2,793,600. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? a. 100% b. 144% c. 69% d. 44% e. 31%
The following information pertains to Whitestone Industries for the year: Estimated total overhead costs Estimated direct labor costs Actual direct labor costs Actual overhead costs Activity base $37,500 25,000 22,500 36,000 Direct labor costs What is the predetermined overhead rate for Whitestone Industries for the year? Oa. 62.5% Ob. 66.7% Oc. 150% Od. 160%