Applying Factory Overhead. Hatch Company estimates that total factory overhead costs will be $36,000 for the year. Direct labor hours are estimated to be 9,000. a. For Hatch Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. 4 per direct labor hour b. During May, Hatch Company accumulated 750 hours of direct labor costs on Job 200 and 640 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.

Applying Factory Overhead. Hatch Company estimates that total factory overhead costs will be $36,000 for the year. Direct labor hours are estimated to be 9,000. a. For Hatch Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. 4 per direct labor hour b. During May, Hatch Company accumulated 750 hours of direct labor costs on Job 200 and 640 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.

Name: Applying Factory OverheadHatch Company estimates that total factory o
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Description: Applying Factory OverheadHatch Company estimates that total factory overhead costs will be $36,000 for the year. Direct labor hours are estimated to be 9,000.a. For Hatch Company, determine the predetermined factory overhead rate using direct labor

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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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?
In December, a company was calculating the predetermined factory overhead rate for the upcoming year, based on machine hours, using the following estimated costs: direct materials $ 550,000, direct labor $ 350,000; factory overhead $ 175,000, sales expenses $ 40,000, general and administrative expenses $ 35,000. The following estimates were also available: direct labor hours 500; machine hours 250 Calculate the predetermined overhead rate for the upcoming year. Multiple Choice $500 per direct labor hour. $650 per machine hour. $350 per direct labor hour. $500 per direct labor hour. $650 per machine hour. $350 per direct labor hour. $1,000 per machine hour. $700 per machine 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 $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?
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.
Cavy Company estimates that the factory overhead for the following year will be $1,699,200. The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 28,800 hours. There are 1,660 machine hours for all of the jobs in the month of April. What amount will be applied to all of the jobs for the month of April?
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.
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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 $351,500 and direct labor hours would be 46,900. Actual manufacturing overhead costs incurred were $323,800, and actual direct labor hours were 54,200. The journal entry to apply the factory overhead costs for the year would include a a.credit to Factory Overhead for $405,958 b.credit to Factory Overhead for $351,500 c.debit to Factory Overhead for $323,800 d.debit to Factory Overhead for $405,958