A company's manufacturing overhead includes $8.50 per machine hour for variable manufacturing overhead and $180,000 per period for fixed manufacturing overhead. What is the predetermined overhead rate for the denominator level of activity of 5,000 machine hours?

A company's manufacturing overhead includes $8.50 per machine hour for variable manufacturing overhead and $180,000 per period for fixed manufacturing overhead. What is the predetermined overhead rate for the denominator level of activity of 5,000 machine hours?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

See similar textbooks

Related questions

Q: Please provide answer this general accounting question

A: 1. Calculate the Predetermined Overhead Rate:Predetermined Overhead Rate = Estimated Total…

Q: What is the work in process inventory on Dec 31, 2013 on these general accounting question?

A: Step 1: Define Work in Process (WIP) InventoryWork in process (WIP) inventory represents the total…

Q: Answer this below Question

A: The correct answer is:(C) Separated if meeting specific criteria Embedded derivatives in hybrid…

Q: Plantz Company makes chairs

A: Step 1: Formula Sales Volume variance= (Actual units sold - Budgeted units sold) x Price per unit…

Q: I want answer

A: Explanation of Direct Materials:Direct materials are the raw materials that are directly used in the…

Q: I need this question answer general Accounting

A: Step 1: Define Net Profit MarginThe net profit margin of a company is the amount of income earned by…

Q: GENERAL ACCOUNTING

A: Step 1:The predetermined overhead rate is the rate used to allocate the manufacturing overhead to…

Q: Need help with this financial accounting question

A: 1. Find the total number of shares issued:We know the par value of the common stock is $5 per share,…

Q: Need answer

A: Explanation of Job Order Cost System:A job order cost system is a method of tracking and assigning…

Q: Calculate river valley manufacturing acid test ratio?

A: Step 1: Definition of Acid-Test RatioThe Acid-Test Ratio, also known as the Quick Ratio, measures a…

Q: I want to this question answer general Accounting

A: 1. Interest:Formula: Interest = Average Borrowed Amount * Interest RateCalculation: $200,000 * 0.12…

Q: Hii ticher please given correct answer general Accounting question

A: Step 1: Definitions:Fixed Costs: Costs that remain constant regardless of production levels (e.g.,…

Q: follow all q and give ans

A: Step 1: Price variance Price variance = Actual cost - (Actual quantity x Standard price) Price…

Q: I need this question answer financial accounting

A: Step 1: Define Capital GainsIn finance, the capital gains refers to the increase in the total value…

Q: General Account

A: Concept of Direct MaterialsDirect materials are the raw materials that are directly used in the…

Q: Problem related to Accounting

A: Option A: This option is incorrect because embedded derivatives are not always separated. Separation…

Q: General accounting

A: Step 1: Definition of Free Cash Flow and Cash Flow Adequacy RatioFree Cash Flow (FCF): The amount of…

Q: Answer? ? Financial accounting

A: To calculate Alpine Corporation's return on equity (ROE) using DuPont analysis, we need to break…

Q: Get correct answer accounting questions

A: Step 1: Information givenNet Income = $24,500Common Dividends = $6,200Preferred Dividends =…

Q: What is the dollar return on your investment of this financial accounting question?

A: Step 1: Define Dollar Return on InvestmentThe dollar return on investment is the total amount of…

Q: Provide correct answer general accounting question

A: To find the effective interest rate, we first need to determine the amount that Fancy Footwear…

Q: Please help me

A: The time value of money (TVM) is a financial concept that states that a sum of money has a different…

Q: Correct answer

A: Let's calculate the equity multiplier for Fresh Foods using the provided data.The equity multiplier…

Q: 6 PTS

A: Definitions Related to the QuestionConcept of Debt Securities:Debt securities represent financial…

Q: provide correct answer general accounting

A: Direct Materials Price Variance1. Standard Price: $10/foot2. Actual Price: $180,000 / 15,000 feet =…

Q: Financial accounting question

A: To calculate the profit margin ratio, use the formula: Profit Margin Ratio=Net SalesNet Income×100…

Q: Calculate dash net income for the year

A: To calculate net income, use the formula: Net Income = Revenues - Expenses Given:Revenues =…

Q: Please need help with this general accounting question get correct answer

A: To calculate the cost of the ending inventory under variable costing, we need to follow these steps:…

Q: Need help with this general accounting question

A: Step 1: Contribution Margin Ratio FormulaThe contribution margin ratio (CMR) is given as 15% (or…

Q: Hi expert please give me answer general accounting question

A: Step 1:Cash reserve ratio is the amount that should be keep as cash by the banks in their reserves.…

Q: Please give me true calculation with explanation and correct answer this general accounting question

A: Step 1: Define Predetermined Overhead RateThe Predetermined Overhead Rate (POHR) is the rate used to…

Q: The following labor standards have been established for a particular product: Standard hours per…

A: To calculate the Variable Overhead Efficiency Variance, we use the formula: Variable Overhead…

Q: Please solve this question

A: Step 1: Define Fixed Overhead CostFixed overhead cost is the amount that is incurred on regular…

Q: None

A: To calculate the net operating income (NOI) for the month under variable costing, we need to follow…

Q: Problem related to Accounting

A: In the concession arrangement, the operator operates and manages the infrastructure controlled by…

Q: Calculate the total current assets? General accounting

A: Step 1: Definition of Current RatioThe Current Ratio measures a company's ability to meet its…

Q: A company has sales of $150 million, cost of goods sold of $100 million, and a before-tax profit of…

A: To solve this, let's first calculate the current profit and the required sales increase. Step 1:…

Q: Accounting

A: Step 1:Calculate the standard cost of leather for the given production as follows:Standard cost of…

Q: Accounting Problem 9.3

A: ROA = Net Income / Average Total Assets Given: Net Income = $225,000 Average Total Assets =…

Q: Depreciation on a personal computer used in the marketing department of a manufacturing company…

A: Depreciation on a personal computer used in the marketing department is considered a period cost…

Q: Accurate Answer

A: Step 1: Calculate the gross profit percentage using the transfer price and costStep 2: Identify the…

Q: Please solve this account problem

A: Explanation of Variable Costs:Variable costs are expenses that change in proportion to the level of…

Q: Subject:- General Account

A: We are tasked with determining the cash received from customers using the given information:Sales…

Q: Assume that retained earnings increased by $375,000 from December 31, 2008, to December 31, 2009,…

A: Step 1: Compute Net Income for the YearThe formula for changes in retained earnings is: Change in…

Q: What is its ROE on these financial accounting question?

A: Step 1: Define Return on Equity (ROE)Return on Equity (ROE) measures a company's profitability by…

Q: Find out the Question

A: iv) Priority in dividend paymentsPreferred stock is designed to give its holders a priority claim on…

Q: Accounting expert need your help

A: Cost of Capital:The cost of capital represents the return required to compensate for the use of the…

Q: What amount will net income increase?

A: Step 1: Definition of Net Income ChangeThe Net Income Change refers to the difference between the…

Q: What is the total amount of your capital gains on this investment? General accounting

A: To calculate the total capital gains from your investment in ABC Co., follow these steps:1.…

Q: Quick answer of this accounting questions

A: To calculate the division's turnover, we use the following formula:Turnover = Sales / Average…

Question

100%

General Accounting

A company's manufacturing overhead includes $8.50 per
machine hour for variable manufacturing overhead and
$180,000 per period for fixed manufacturing overhead. What
is the predetermined overhead rate for the denominator level
of activity of 5,000 machine hours?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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?
A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
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
A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was $445,000, and there were 50,500 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
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
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?