At the beginning of a year, Mountain Manufacturing predicts total direct materials costs of $850,000 and total overhead costs of $935,000. If the company uses direct materials costs as its activity base to allocate overhead, what is the predetermined overhead rate it should use during the year?

At the beginning of a year, Mountain Manufacturing predicts total direct materials costs of $850,000 and total overhead costs of $935,000. If the company uses direct materials costs as its activity base to allocate overhead, what is the predetermined overhead rate it should use during the year?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

See similar textbooks

Related questions

Q: Choose accurate option. Tagging. general account

A: Calculate Operating Income:Operating Income = Sales - Operating Costs - Depreciation= $9,000 -…

Q: Instructions Create a budget for an event. The budget should have a set of incomes and a set of…

A: To complete this problem, you'll create a budget for an event in a spreadsheet program like Excel or…

Q: Joberg Ltd. prepared an aging of its accounts receivable at December 31, 2020 and determined that…

A: Bad debt expense is the amount that a company estimates will not be collected from its customers who…

Q: Financial accounting

A: Step 1:Under the high-low method, the variable cost per unit is calculated by dividing the…

Q: What amount should be reported on Birk Camera Shop's financial statements, assuming the…

A: The correct answer is:b) Direct materials cost, direct labor cost, and variable manufacturing…

Q: Solve this problem please

A: The number of shares before the rights issue can be calculated by dividing the share capital by the…

Q: When describing “Materiality” the concept refers to Select one: a. the tangible nature of an…

A: In accounting, the concept of materiality refers to the significance of an amount, transaction, or…

Q: Wanted This General Account solution ASAP

A: Step 1: Given Information - Unit Information: - Beginning WIP: 4,000 units. - Units started into…

Q: Hi tutor answer me asap

A: An income statement using variable costing is a financial statement that separates costs into…

Q: Please provide answer the general accounting question

A: Step 1: Define Cost of Goods Manufactured Cost of Goods Manufactured represents the total production…

Q: Please solve this general accounting question

A: Step 1: Define Accounts ReceivableAccounts receivable are debited when the revenue is earned but not…

Q: General Accounting

A: The question would require us to compute for the dividend yield and the required return. First…

Q: Lower-of-Cost-or-Market (LCM) Method The following data are taken from the Smith & Wesson…

A: Step 1: Lower amount The lower of cost or market approach states that inventory should be recorded…

Q: Question:Cost Account Freeze Frame Camera Shop uses the lower-of-cost-or-net realizable value for…

A: To determine the ending inventory using the lower-of-cost-or-net realizable value (LCNRV) basis, we…

Q: Do fast answer of this accounting questions

A: Step 1: Define Effect of Net Income on the Accounting EquationThe main objective of every business…

Q: General Accounting

A: Step 1: Define Return on Assets (ROA)ROA indicates the companies' profitability in terms of the…

Q: Given answer accounting questions

A: Step 1: Define Contribution MarginThe contribution margin refers to the revenue over the variable…

Q: Novak Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: To determine the inventory amount for Novak Company under the lower-of-cost-or-market (LCM) rule,…

Q: 18 Which of the following statements is FALSE? Select one: a. The timing of inspection…

A: a. The timing of inspection affects abnormal spoilage amounts.Since the timing of inspections…

Q: Total reserves: Value $40 billion Transactions deposits: $750 billion Cash held by public: Required…

A: (a) ANSWER :: 1200 BillionExplanation :Money Supply = Transactions Deposits + Cash Held By Public=…

Q: 12 Which method is used when all fixed manufacturing costs and variable manufacturing costs are…

A: Absorption costing, also called full costing, is an accounting method that assigns all manufacturing…

Q: The cost per equivalent unit of production for conversion is:

A: To calculate the cost per equivalent unit of production for conversion under the weighted-average…

Q: Hi expert please give me answer general accounting question

A: To determine the projected benefit obligation (PBO) at December 31, we need to account for the…

Q: 7)14% - XYZ Corporation is preparing a master budget for 2024. Sales for the year are expected to…

A: Step 1: Calculate Quarterly Sales VolumeExplanation: Break down the total annual sales into…

Q: Please given correct answer general accounting

A: Step 1: Define Net SalesNet sales are a company's revenue after deducting discounts, returns, and…

Q: 15 Joberg Ltd. prepared an aging of its accounts receivable at December 31, 2020 and determined…

A: Hello student! To determine the bad debt expense, we should start with calculating the Allowance for…

Q: Give true answer the following requirements a and b on this general accounting question

A: Step 1: Define Return on AssetTo determine the ability of a company to generate profit with the help…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Beginning InventoryThe formula to calculate Cost of Goods Sold (COGS)…

Q: Hello.tutor please given correct answer general Accounting

A: To calculate the company's days' sales in receivables, we first need to determine the total sales…

Q: Discuss

A: Key Definitions Related to Question:Revenue Recognition Principle: The accounting principle that…

Q: Can you please help me to find best options? Subject is general account

A: To determine the number of units started or transferred, we apply the units reconciliation formula:…

Q: What is the debt equity ratio of this financial accounting question?

A: Step 1: Define Business ExpansionBusiness expansion is the process of increasing the production…

Q: 8 The exercise of professional judgement does NOT involve Select one: a. aggressive accounting.…

A: Option a: This option is correct because the exercise of professional judgement does not involve…

Q: Please provide correct solution this general accounting question

A: Step 1: Define Operating and Cash conversion cycleThe operating cycle is the time it takes for a…

Q: Santa Fe Corporation has computed the following unit costs for the year just: Direct material used…

A: To determine the per-unit cost of inventory under both variable costing and absorption costing, we…

Q: General accounting question please provide correct answer

A: Compute the net sales.Net sales = Sales - Sales returns and allowances - Sales discountsNet sales =…

Q: None

A: Explanation of Milestone Payments: Milestone payments are specific amounts paid upon achieving…

Q: 17 YU Inc. reported the following amounts: Cash in bank—chequing account of $37,000, Cash on hand…

A: Step 1: Identify amounts available for immediate use as cashStep 2: Include cash in bank (chequing…

Q: Accounting Problem 2.5: The balance sheet of Bright Sportswear reports total equity of $500,000 and…

A: Explanation of Balance Sheet: A balance sheet is a financial statement that shows a company's…

Q: Financial Account Questions Answer me please

A: (b) What is its marginal tax rate?Assuming a standard corporate tax bracket structure:Typically, for…

Q: Answer this financial accounting MCQ

A: Explanation of Dynamic Allocation Models: Dynamic allocation models are sophisticated resource…

Q: Bata Company's salaried employees are paid biweekly. Occasionally, advances made to employees are…

A: Explanation of Accrued Salaries Payable: Accrued salaries payable represents the amount of wages or…

Q: Get correct answer accounting questions

A: Step 1: Define Gross ProfitGross profit or gross margin is presented as a line item on the…

Q: The following information is available for October for Norton Company. Beginning inventory Net…

A: Step 1: Key Information RecapBeginning Inventory: $400,000Net Purchases: $1,200,000Net Sales:…

Q: Gambarini Corporation is a wholesaler that sells a single product. Please provide answer this…

A: Step 1: Define High-Low MethodWhen we want to segregate fixed and variable costs, we can use the…

Q: Given answer accounting questions

A: To calculate the debt to assets ratio and the long-term debt to equity ratio, we can use the…

Q: Provide correct answer general accounting

A: Step 1: Define Accounts Receivable CollectionAccounts receivable, or sales on account, refers to the…

Q: Please given correct option general accounting

A: Step 1: Define Cash ReceiptsCash receipts to the seller come from cash sales and collection of…

Q: Solve this question

A: To calculate the average days it took B&B to collect an outstanding receivable during Year 2, we…

Q: Simone a single taxpayer solve this general accounting question

A: Step 1: Define Taxable gainTaxes on the taxable gain on the sale of a personal dwelling are due when…

Question

Don't use ai please give me answer general accounting question

At the beginning of a year, Mountain Manufacturing
predicts total direct materials costs of $850,000 and
total overhead costs of $935,000. If the company uses
direct materials costs as its activity base to allocate
overhead, what is the predetermined overhead rate it
should use during the year?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?
Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $17 per hour.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?