At the end of the year, Ilberg Company provided the following actual information:OverheadDirect labor cost$423,600549,200Ilberg uses normal costing and applies overhead at the rate of 80% of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $1,815,000.This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.XOpen spreadsheetRequired:1. Calculate the overhead variance for the year.4,720 X overapplied2. Dispose of the overhead variance by adjusting Cost of Goods Sold.Adjusted COGS: $ 1,920,280 ×

The objective of the question is to calculate the overhead variance for the year and then adjust the…

Answered: At the end of the year, Ilberg Company…

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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Presented below are Rook Company’s monthly manufacturing cost data related to its tablet computer product. (a) Utilities for manufacturing equipment $116,000 (b) Raw materials (CPU, chips, etc.) $85,000 (c) Depreciation on manufacturing building $880,000 (d) Wages for production workers $191,000 Enter each cost item in the following table, placing an “X” under the appropriate headings. Product Costs DirectMaterials DirectLabor FactoryOverhead (a) X X X (b) X X X (c) X X X (d) X X X
Morton Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $50,500 and at the end of the month was $46,500. The cost of goods manufactured for the month was $241,000. The actual manufacturing overhead cost incurred was $89,000 and the manufacturing overhead cost allocated to Work in Process was $85,000. The adjusted cost of goods sold that would appear on the income statement for November is: $241,000 $245,000 $237,000 $249,000
Audio Zone Co. needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months. Total Machine Month Overhead Hours Jan. $6, 288 1,980 Feb. 6,460 2,090 Mar. 5,987 1,745 Apr. 5,559 1,560 Мay 6,032 1,865 June 6,341 2,012 Using the high-low method, total monthly fixed overhead cost is calculated to be:
Below is an exerpt from the financial data from JasNav Inc. The company has adopted a standard costing system. The following data are for the year ended December 31, 20x3: Inventory, Jan 1, 20x3 100,000 units Inventory, Dec 31, 20x3 35,000 units Sales 350,000 units Selling price $35.00 Variable manufacturing costs 7.00 Variable selling costs 1.50 Fixed manufacturing overhead $1,710,000 Denominator-level direct labour hours 7,500 Standard production rate 40 units per direct labour hour Fixed operating expenses $1,000,000 Required – Prepare income statements under variable and absorption costing for the year ended December 31, 20x3 and reconcile the two incomes. Assume that the budget costs were the same as the actual costs incurred
Acacia Manufacturing has compiled the following information from the accounting system for the one product it sells: $45 per unit Sales price Fixed costs (for the month) Marketing and administrative Manufacturing overhead Variable costs (per unit) Marketing and administrative Direct materials Manufacturing overhead Direct labor Units produced and sold (for the month) Required: a. Calculate the product costs per unit Note: Round your answer to 2 decimal places. b. Calculate the period costs for the period. $ 23,100 $ 8,400 Exercise 2-55 (Static) Components of Full Costs (LO 2-6) a. Product costs per unit b. Period costs $2 $ 13 $3 $9 21,000
At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $520,000, and direct materials costs, $200,000.At year-end, the company reports that actual overhead costs for the year are $528,700 and actual direct materials costs for the year are $200,000. 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead…
The controller of Carla Vista Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,830 300 February 3,130 350 March 3,730 500 April 4,630 690 May 3,330 500 June 6,030 700 (a1) Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour $
Dog
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Power Cost Factory Machine Hours $28,390 15,800 36,069 21,400 32,895 18,700 ITT 26,235 15,100 23,890 13,500 20,700 Month January February March April May June Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. (a) Your answer is correct. What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Variable power costs $ (b) eTextbook and Media * Your answer is incorrect. 10.500 Fixed power costs What is the estimated fixed power cost each month? High 1.41 per factory machine hour 20,683 $ Low Attempts: 1 of 5 used
Munabhai
Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $8700 800 February 8360 720 March 8950 810 April 9360 920 May 9625 950 June 9150 900 1The variable utilities cost per machine hour is: a) $0.18. b) an amount other than those listed above. ) $4.50. d) $5.00. e) $5.50. 2. The fixed utilities cost per month is: a) an amount other than those listed above. b) $4,760. ) $3,764. d) $5,100. e) $4,400. 3. Using the high-low method, the utilities cost associated with 980 machine hours would be: a) an amount other than those listed above. b) $9,660. ) $9,700. d) $9,790. e) $9,510.
The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report.

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