Alden, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $10,000,000 and total direct labor hours to be 200,000 hours. a) Calculate Alden's predetermined overhead rate. In March, Alden incurred actual overhead costs of $830,000 and used 18,000 hours. b) How much was Alden's over- or under-applied overhead for the month of March?

Alden, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $10,000,000 and total direct labor hours to be 200,000 hours. a) Calculate Alden's predetermined overhead rate. In March, Alden incurred actual overhead costs of $830,000 and used 18,000 hours. b) How much was Alden's over- or under-applied overhead for the month of March?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...

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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?
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Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
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