Applying Factory Overhead Carrothers Company estimates that total factory overhead costs will be $210,000 for the year. Direct labor hours are estimated to be 14,000. a. For Carrothers Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. per direct labor hour b. During August, Carrothers Company accumulated 760 hours of direct labor costs on Job 50 and 740 hours on Job 56. Determine the amount of factory overhead applied to Jobs 50 and 56 in August. $ c. Journalize the entry to apply factory overhead to both jobs in August according to the predetermined overhead rate. If an amount box does not require an entry, leave it blank.

Applying Factory Overhead Carrothers Company estimates that total factory overhead costs will be $210,000 for the year. Direct labor hours are estimated to be 14,000. a. For Carrothers Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. per direct labor hour b. During August, Carrothers Company accumulated 760 hours of direct labor costs on Job 50 and 740 hours on Job 56. Determine the amount of factory overhead applied to Jobs 50 and 56 in August. $ c. Journalize the entry to apply factory overhead to both jobs in August according to the predetermined overhead rate. If an amount box does not require an entry, leave it blank.

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Description: Applying Factory OverheadCarrothers Company estimates that total factory overhead costs will be $210,000 for the year. Direct labor hours are estimated to be 14,000.a. For Carrothers Company, determine the predetermined factory overhead rate using d

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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Show Me How Applying factory overhead Keenan Company estimates that total factory overhead costs will be $322,000 for the year. Direct labor hours are estimated to be 23,000. a. For Keenan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. $ per direct labor hour b. During May, Keenan Company accumulated 720 hours of direct labor costs on Job 200 and 510 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. $ c. Prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate. If an amount box does not require an entry, leave it blank.
Saddle Inc. applies overhead on the basis of direct labor costs. The company estimates annual overhead costs will be $760,000 and annual direct labor costs will be $950,000. During February, Saddle works on two jobs: A16 and B17. Summary data concerning these jobs are as follows:Manufacturing Costs Incurred: Purchased $54,000 of raw materials on account. Factory labor $76,000, plus $4,000 employer payroll taxes. Manufacturing overhead exclusive of indirect materials and indirect labor $59,800. Assignment of Costs: Direct Materials: Job A16: $27,000, Job B17: $21,000 $3,000 Indirect Materials: $3000 Direct Labor: Job A16: $52,000, Job B17: $26,000 $2,000 Indirect labor: $2000 The company completed Job A16 and sold it on account for $150,000. Job B17 was only…
Salinger Company estimates that total factory overhead costs will be $78,000 for the year. Direct labor hours are estimated to be 13,000. a. For Salinger Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places b. During August, Salinger Company accumulated 850 hours of direct labor costs on Job 40 and 530 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August. c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.
Yarra Fabrication estimates that its manufacturing overhead will be $2,297,600 in year 1. It further estimates that direct material costs will amount to $1,436,000. Actual manufacturing overhead costs for the year were $2,445,000. Actual direct materials costs were $1,595,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,552,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory $ 475,750 Finished goods inventory $ 1,124,500 Cost of goods sold $ 7,049,750 Required: Prepare an entry to allocate the over- or underapplied overhead.
South West Corporation uses a predetermined overhead rate based on direct labour cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labour-hours. The company's direct labour wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labour cost of $650,0 For the year, manufacturing overhead was: Underapplied or overapplied and by how much?
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?
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At the beginning of the year, a company estimated a predetermined plantwide overhead rate of 140% of direct labor cost. Job X was charged $200 and $250 for direct materials and direct labor, respectively. What is the total job cost for Job X? Multiple Cholce $850 $800 $600 $550
Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1, 710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows: Work-in-process inventory $ 33,810 Finished goods inventory $ 270,480 Cost of goods sold $ 1,386, 210 Required: Prepare an entry to allocate the over- or underapplied overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was: Select one: a. $0.04 per machine hour b. $0.05 per machine hour c. $20 per machine hour d. $21 per machine hour e. S25 per machine hour
Shoes Wisely, Inc. allocates overhead using machine hours as the allocation base. The following information was estimated at the beginning of the year: Estimated Manufacturing Overhead $73,000 Estimated Machine Hours 19,000 Actual overhead totaled $72,000. During the year, the company produced 8,500 units of product using 14,000 machine hours and 60,000 direct labor hours. How much manufacturing overhead was allcoated to the product during the year? Round your answer to whole dollars.
Eli Lilly Corporation has their headquarters in Indiana. Lilly uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Lilly has provided the following estimated costs for next year: Direct Materials Direct Labor Rent on Factory Building Sales Salaries Depreciation on Factory Equipment Indirect Labor Production Supervisor's Salary Lilly estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: Multiple Choice O O $4.18 $2.88 $1.95 $7,000 $21,000 $16,000 $26,000 $9,500 $13,500 $18,500 $2.40