Antoine Machining estimated its manufacturing overhead to be $282,720 and its direct materials costs to be $456,000 in Year 1. Threeof the jobs that Antoine Machining worked on in Year 1 had actual direct materials costs of $15,900 for Job AM002, $58,300 for JobAM005, and $74,200 for Job AM008. For Year 1, actual manufacturing overhead was $313,600 and total direct materials cost was$570,000. Manufacturing overhead is applied to jobs on the basis of direct materials costs using predetermined rates.Overhead applied in each of the inventory accounts is as follows:Work-in-process inventoryFinished goods inventoryCost of goods soldRequired:$ 21,20467,146265,050Prepare an entry to allocate the under- or overapplied overhead.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listJournal entry worksheet>ARecord the allocation of over- or underapplied overhead.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit

Step 1:Computation of underapplied or overapplied overhead: . It is overapplied since the applied…

Answered: Antoine Machining estimated its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Department S had no work in process at the beginning of the period. It added 14,000 units of direct materials during the period at a cost of $98,000; 10,500 units were completed during the period; and 3,500 units were 24% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $53,400 and factory overhead was $8,200. The total cost of units completed during the period was $73,500 $122,944 $130,537 $156,644
Calico Corporation produced 2,000 units in Job 903. The following data is provided for Job 903 for the year: Direct materials used $2,300 Direct labor costs $700 Actual manufacturing overhead rate per direct labor hour $17.15 Predetermined manufacturing overhead rate per direct labor hour $18.30 Direct labor hours used in Job 903 35 Direct labor rate per hour $20 What is the total cost of Job 903? $3,000 $3,640.50 $24,500 $3,020
Jordan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $326,000 Direct labor-hours 900,000 Machine maintenance $132,000 Machine-hours 960,000 Facility rent $217,000 Square feet of area 100,000 Total overhead costs $675,000 The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor-hours 200 Machine-hours 1,500 Square feet of area 70 If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for Jordan?
Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $84,000; 9,000 units were completed during the period; and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500, and factory overhead was $9,900. The total cost of units completed during the period was a. $143,400 b. $127,450 c. $121,000 d. $117,000
Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $ 200,000. Estimated machine usage is 2,500 hours. The company assigns overhead based on machine hours. Job No. 551 used 90 machine hours. Compute the predetermined overhead rate. Predetermined overhead rate $?
Blue Sky Soda estimates total factory overhead costs of $4,200,000 and total direct labor costs of $2,800,000 for its first year of operations. During January, the company used $80,000 of direct labor cost in its Blending department and $60,000 of direct labor cost in its Bottling department. Compute the predetermined overhead rate as a percentage of direct labor cost. Prepare the journal entry to apply factory overhead to the Blending and Bottling departments. Complete this question by entering your answers in the tabs below. Required 2 Prepare the journal entry to apply factory overhead to the Blending and Bottling departments. Journal entry worksheet 1 Record the entry to apply overhead to production Note: Enter debits before credits. Prev. 5 of 5 Next Type here to search
Osborn Manufacturing uses a predetermined overhead rate of $19.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period. Can you please help me with the following: Determine the amount of underapplied or overapplied manufacturing overhead for the period, then assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company’s gross margin? By how much?
Reynolds Manufacturers Inc. has estimated total factory overhead costs of $104,400 and expected direct labor hours of 11,600 for the current fiscal year. If job number 117 incurs 1,380 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for
Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 59,250 actual direct labor-hours and incurred $482,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 61,300 direct labor-hours during the year and incur $416,840 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $257,400 of total manufacturing overhead cost for an estimated activity level of 11,000 direct labor- hours. The company incurred actual total manufacturing overhead cost of $249,000 and 10,800 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead applied
Cullumber Company estimates that annual manufacturing overhead costs will be $768,000. Estimated annual operating activity bases are: direct labor cost $588,800, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $769,280 and the actual direct labor cost for the year was $583,680. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000. Cullumber applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount. (Round predetermined overhead rate to 2 decimal places, e.g. 15.25 and all other answers to O decimal places, e.g. 1,525.) Predetermined overhead rate $ Manufacturing overhead applied $ $ per direct labor hour
Richey Company uses an actual cost accounting system that applies overhead on the basis of direct labor hours. At the beginning of the year, management estimated that during the year, the company would work 26,000 direct labor hours and budgeted $1,300,000 for MOH. The company actually worked 24,000 direct labor hours and incurred the following actual manufacturing costs: Direct materials used in production $1,240,000 Direct labor 1,800,000 Indirect labor 300,000 Indirect materials 220,000 Insurance 150,000 Utilities 190,000 Repairs and Maintenance 180,000 Depreciation 320,000 Determine the amount of underapplied or overapplied overhead for the year.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS