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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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.
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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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Reynolds Manufacturers Inc. has estimated total factory overhead costs of $113,400 and expected direct labor hours of 12,600 for the current fiscal year. If Job 117 incurs 1,460 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for a. $13,140 b. $56,700 c. $113,400 d. $1,460
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The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $130,000 and total direct labor costs would be $100,000. During May, the actual direct labor cost totaled $13,000 and factory overhead cost incurred totaled $17,350. Required: a. What is the predetermined factory overhead rate based on direct labor cost? On May 31, journalize the entry to apply factory overhead to production. Refer to the chart of accounts for the exact wording of the account titles. . b. What is the May 31 balance of the account Factory Overhead-Blending Department? Does the balance in part c represent over- or underapplied factory overhead?