Applying Factory Overne Instructions Chart of Accounts Instructions Factory Overhead Journal Lockmiller Company estimates that total factory overhead costs will be $867,000 for the year. Direct labor hours are estimated to be 102.000 Required: a For Lockmiller Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent b. During May, Lockmiller Company accumulated 1,900 hours of direct labor costs on Job 275 and 2,600 hours on Job 310 Determine the amount of factory overhead applied to Jobs 275 and 310 in May c. Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the chart of accounts for the exact wording of the account tiles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered

Applying Factory Overne Instructions Chart of Accounts Instructions Factory Overhead Journal Lockmiller Company estimates that total factory overhead costs will be $867,000 for the year. Direct labor hours are estimated to be 102.000 Required: a For Lockmiller Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent b. During May, Lockmiller Company accumulated 1,900 hours of direct labor costs on Job 275 and 2,600 hours on Job 310 Determine the amount of factory overhead applied to Jobs 275 and 310 in May c. Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the chart of accounts for the exact wording of the account tiles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered

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Description: Applying Factory OverheadInstructions Chart of Accounts Factory OverheadJournalInstructionsLockmiller Company estimates that total factory overhead costs will be $867,000 for the year, Direct labor hours are estimated to be 102.000Required:a For Loc

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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Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $38,900. Required: 1. Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number.fill in the blank 1 % of direct labor cost 2. Calculate the overhead applied to production in December.$fill in the blank 2
Crosshill Company's total overhead costs at various levels of activity are presented below: Month Machine- Hours Total Overhead Cost April 70,000 $ 202,200 May 60,000 $ 180,300 June 80,000 $ 224,100 July 90,000 $ 246,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 60,000-machine-hour level of activity in May is as follows: Utilities (variable) $ 52,200 Supervisory salaries (fixed) 21,000 Maintenance (mixed) 107,100 Total overhead cost $ 180,300 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal places.) 2. Using the high-low…
Job Order Costing: Q1: PearCo estimates that it will require 160,000 direct labor- hours to meet the coming period's estimated production level. In addition, the company estimates total fixed manufacturing overhead at $200,000, and variable manufacturing overhead costs of $2.75 per direct labor hour. Using plantwide overhead rate (single predetermined overhead rate either direct labor hours or machine hours). Calculate estimated total manufacturing overhead cost and predetermined overhead rate. What will be the applied factory overhead cost? Q2: Dickson Company has two production departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the Milling Department is based on machine-hours and in the Assembly Department it is based on direct labor-hours. The company uses cost-plus pricing (and a markup percentage of 75% of total manufacturing cost) to establish…
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Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania’s plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Xania has the following data for its two departments for the coming year: Department A Department B Overhead costs (expected) $110,000 $78,000 Normal activity (machine hours) 13,500 15,800 Required: 1. Compute a predetermined overhead rate for the plant as a whole based on machine hours. Round your answer to two decimal places.$ per machine hour 2. Compute predetermined overhead rates for each department using machine hours. (Note: Round to two decimal places, if necessary.) Department A $ per machine hour Department B $ per machine hour 3. Conceptual Connection: Job 73 used 20 machine hours from Department A and 50 machine hours from…
Question Content Area Cavy Company estimates that the factory overhead for the following year will be $1,329,900. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 42,900 hours. The machine hours for the month of April for all of the jobs were 5,300. Journalize the entry to record the factory overhead applied in April. If an amount box does not require an entry, leave it blank.
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