Adams, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation Supplies Materials handling Property taxes Production setup Rent Maintenance Supervisory salaries $190,800 20,800 32,800 14,800 a. Predetermined overhead rate b. Applied manufacturing overhead 20,000 44,500 38,600 157,700 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 212,000 and for machines were 130,000. Required a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 145,000. (Do not round intermediate calculations.) per machine hour
Adams, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation Supplies Materials handling Property taxes Production setup Rent Maintenance Supervisory salaries $190,800 20,800 32,800 14,800 a. Predetermined overhead rate b. Applied manufacturing overhead 20,000 44,500 38,600 157,700 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 212,000 and for machines were 130,000. Required a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 145,000. (Do not round intermediate calculations.) per machine hour
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![Adams, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows.
Equipment depreciation
Supplies
Materials handling
Property taxes
Production setup
Rent
Maintenance
Supervisory salaries
$190,800
20,800
32,800
14,800
20,000
44,500
38,600
157,700
The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 212,000 and for
machines were 130,000.
Required
a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)
b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine
hours were 145,000. (Do not round intermediate calculations.)
a. Predetermined overhead rate
b. Applied manufacturing overhead
per machine hour](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b3a5a8-62f8-422a-9e49-23846b36685e%2F6d0e9052-5158-4d55-bd77-63d41a2b1922%2F93qm02p_processed.png&w=3840&q=75)
Transcribed Image Text:Adams, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows.
Equipment depreciation
Supplies
Materials handling
Property taxes
Production setup
Rent
Maintenance
Supervisory salaries
$190,800
20,800
32,800
14,800
20,000
44,500
38,600
157,700
The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 212,000 and for
machines were 130,000.
Required
a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)
b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine
hours were 145,000. (Do not round intermediate calculations.)
a. Predetermined overhead rate
b. Applied manufacturing overhead
per machine hour
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