A manufacturing company applies overhead based on direct labor hours. Atthe beginning of the year, it was estimated that overhead costs would be$450,000 and direct labor hours would be 90,000. Actual overhead costsincurred were $459,000 and actual direct labor hours were 95,000. What isthe amount of overapplied or underapplied overhead at the end of the year?A. $16,000 overappliedB. $16,000 underappliedC. $9,000 overappliedD. $9,000 underapplied

The applied overhead cost based on direct labor hours is higher than actual, hence it is…

Answered: A manufacturing company applies…

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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A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $349,700 and direct labor hours would be 40,000. Actual manufacturing overhead costs incurred were $300,400, and actual direct labor hours were 52,900. What is the predetermined overhead rate per direct labor hour?
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $233,125 and direct labor hours would be 46,625. Actual factory overhead costs incurred were $247,123, and actual direct labor hours were 51,484. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$24,295 underapplied b.$257,420 overapplied c.$10,297 underapplied d.$10,297 overapplied
Assume the following: 1. Estimated fixed manufacturing overhead for the coming period of $220,000 2. Estimated variable manufacturing overhead of $2.00 per direct labor hour 3. Actual manufacturing overhead for the period of $320,000 4. Actual direct labor-hours worked of 54,000 hours 5. Estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: Note: Round your intermediate value of "Predetermined overhead rate" to two decimal places. Multiple Choice $325,926. $324,000. $336,004.
Winston Company estimates that total factory overhead for the following year will be $1,050,300. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 38,900 hours. The total machine hours for the year were 54,200. The actual factory overhead for the year was $1,455,000. a. Determine the total factory overhead applied. Round to the nearest dollar. b. Compute the over- or underapplied factory overhead for the year. c. Journalize the entry to transfer the over- or underapplied factory overhead to Cost of Goods Sold. If an amount box does not require an entry, leave it blank.
Martin Manufacturing assigns overhead to jobs based on machine hours. At the beginning of the current year, estimated overhead costs were $200,000 and estimated machine hours were 40,000. During the year, 140 machine hours were used on Job 88. By the end of the year, actual overhead costs were calculated to be $202,500 and actual machine hours were 45,000.How much overhead was applied to Job 88 during the year?
A company estimates its manufacturing overhead will be $525,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 42,000 per direct labor hour B. Budgeted direct labor expense: $1,050,000 per direct labor dollar C. Estimated machine hours: 70,000 per machine hour
d. Assume that the actual level of activity next year was 36,000 direct labor hours and that manufactur- ing overhead was $341,550. Determine the underapplied or overapplied manufacturing overhead at the end of the year. e. Describe two ways of handling any underapplied or overapplied manufacturing overhead at the end of the year. e. Describe two ways of handling any underapplied or overapplied manufacturing overhead at the end of the year.
A company estimated 120,000 direct labor hours and $1,200,000 in overhead. The actual overhead was $1,205,400, and there were 119,700 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year? Predetermined overhead rate $ per direct labor hour Overhead applied
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $349,900 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $303,900, and actual direct labor hours were 52,500. The journal entry to apply factory overhead costs for the year would include a A. Credit to factory overhead for 349,900 B. Debit to factory overhead for 390,600 C. Credit to factory overhead for $390,600 D. Debit to factory overhead for $303,900
A company estimated 80,000 direct labor hours and $640,000 in overhead. The actual overhead was $645,100, and there were 79,800 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year? Predetermined overhead rate $fill in the blank 1 Overhead applied per direct labor hour
Carter Company expected to incur $10,350 in manufacturing overhead costs and use 4,500 machine hours for the year. Actual manufacturing overhead was $9,500 and the company used 4,700 machine hours. 9. Calculate the predetermined overhead allocation rate using machine hours as the allocation base. 10. How much manufacturing overhead was allocated during the year? O 9. Calculate the predetermined overhead allocation rate using machine hours as the allocation base. Predetermined overhead allocation rate per machine hour
Cavy Company estimates that total factory overhead costs will be $1,039,500 for the year. Direct labor hours are estimated to be 110,000.

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