General Accounting A company expected its annual overhead cost to be$900,000 and direct labor costs to be $1,000,000. Actualoverhead was $870,000, and actual labor costs totaled$1,100,000. How much is the company's predeterminedoverhead rate to the nearest cent?

Step 1: Define Allocation of Overhead CostIn the domain of finance, the overall cost of a firm is…

Answered: A company expected its annual overhead…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has 100,000 machine hours, would there be an under applied or over applied overhead?
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
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K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and $1,050,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 130,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? $0.25 per direct labor hour. O $47.50 per direct labor hour. O $39.42 per direct labor hour. O $8.08 per direct labor hour. O $0.12 per direct labor hour.
A company expects to manufacture 7,000 units. Its direct material costs are $10 per unit, direct labor is $9 per unit, and variable overhead is $3 per unit. The fixed overhead is estimated at $49,000. How much would each unit cost under both the variable method and the absorption method?
The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated that 40,000 units will be produced at a materials cost of P200,000. Production will require 40,000 man-hours at an estimated wage cost of P80,000. The machines will run about 25,000 hours. How much is the Materials Handling Cost Driver rate?
The management of Red Star Company estimates that 60,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $5 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate?

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A company expected its annual overhead cost to be $900,000 and direct labor costs to be $1,000,000. Actual overhead was $870,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?