A company has an overhead application rate of 120% of direct labor costs. How much overhead would be allocated to a O $6,000 O $25,000 O $36,000 O $187.500 O $360,000 Question 10 O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $1,100,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate?

A company has an overhead application rate of 120% of direct labor costs. How much overhead would be allocated to a O $6,000 O $25,000 O $36,000 O $187.500 O $360,000 Question 10 O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $1,100,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate?

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Description: ### Educational Website Content: Cost Accounting Practice Questions#### Question 9A company has an overhead application rate of 120% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $30,000?- [

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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Biz Company uses a job order cost system and applies factory overhead to production orders on the basis of direct labor cost. The overhead rates for 2020 are 150% for Dept. A and 100% for Dept. B. Job 915, started and completed during 2020, was charged with the following cost: Dept A: DM $30,000; DL ?; Applied FOH $45,000. Dept. B: DM $8,000; DL $25,000; Applied FOH ? The total manufacturing costs associated with Job 915 should be $148,000. $163,000. $160,500. $108,000.
Moede Motors applies overhead based a single plant-wide rate and uses direct labor hours as the basis for the rate. At the beginning of the estimated that overhead costs would be $320,000 and estimated that direct labor hours would be 80,000. Actual hours incurred for Job A were 81,000. The total actual overhead costs for the company were $425,000. Compute the overhead applied to Job A, based on direct labor hours. O a. S320,000 O b.S324,000 O c.S419,753 O d. $425,000 year, Jackson QUESTION 14 Which of the following costs of quality (COQ) would be considered an internal preventative cost? O a. The cost of training employees in good customer service O b. The cost of a lawsuit when customers O. The cost of hiring employees O d. The cost of reworking products at minimum wage are injured using the product that fail while testing them QUESTION 15 If sales are S250.000, variable cost of goods sold is $25,000, variable selling expenses are $15,000 and fixed costs are S10,000, how much is the…
Practice Example 1: White Company has two departments, Cutting and Finishing. The company uses a job-order cost system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor cost. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Manufacturing overhead cost Direct labour cost Cutting 6,000 48,000 Rs360,000 Rs50,000 Finishing 30,000 5,000 Rs486,000 Rs270,000 Required: 1. Compute the predetermined overhead rate to be used in each department. 2. Assume that the overhead rates that you computed in (1) above are in effect. The job cost sheet for job 203, which was started and completed during the year, showed the following: Cutting 6 80 Rs500 Rs70 Department Finishing 20 4 Rs310 Rs150 Direct labor-hours Machine-hours Materials requisitioned Direct labor cost Compute the total overhead cost applied to Job…
A company uses job-order costing system with a pre-determined overhead rate based on the machine hours. The total machine hours are 64,000 hours. The variable manufacturing overhead per machine hour is $6 and the estimated total fixed manufacturing overheads cost is $704,000. The additional information for a job order “JOCS" is summarized as follows: Description Number of units Total machine hours Direct materials Direct labor costs 20 80 $1,400 $2,800 The company marks up it unit product costs by 25%. With the provided information, compute the selling price of the unit in JOCS. a. $347.50 b. $278 с. $295.94 d. $267.81
The Jase Company allocates overhead based on a predetermined overhead rate of $9.00 per direct labor hour. Job J904 required 8 tons of direct material at a cost of $600 per ton and took employees who earn $21 per hour a total of 80 hours to complete. What is the total cost of Job J904?
The Collins Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labour cost in Dept. A and machine hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B Direct Labour cost £65,000 £42,000 Manufacturing overhead 91,000 48,000 Direct Labour hours 8,000 10,000 Machine hours 3,000 12,000 What predetermined overhead rates would be used in Dept A and Dept B, respectively?
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A) Explain in detail how a single, plant-wide factory overhead allocation rate is established (i.e., what is the formula?). Pate Company uses a job order cost accounting system. The company's management estimated that they would incur 250,000 hours of direct labor hours at a cost of $12.00 per hour, totaling $3,000,000; they also estimate that total factory overhead costs would be $1,500,000 for the current period. At the end of the period, the records show that the actual number of direct labor hours amounted to 248,000. The records also showed that actual (not the allocated amount) overhead costs amounted to $1,520,000. (B) Using the preceding example, calculate the pre-determined factory overhead allocation rate that was used, assuming that direct labor hours were used as the base. (C) Did Pate Company OVER-allocate or UNDER-allocate factory overhead for the period?
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