At the end of the year, overhead applied was $3,691,000. Actual overhead was $3,451,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to Oa. increase by $480,000 Ob. decrease by $240,000 Oc. increase by $240,000 Od. decrease by $480,000
Q: A company estimated 102,946 direct labor hours and $898,521 in overhead. The actual overhead was…
A: Given, Estimated overhead = $898,521 Estimated direct labor hours = 102,946 Actual direct labor…
Q: For The period just ended, the gross margin of Robin Company was P 3,840,000, the cost of goods…
A: Total manufacturing costs = cost of goods manufactured + work in process inventory increased =…
Q: business operated at 100% of capacity during its first month and incurred the following costs:…
A: Introduction: To keep track of all costs associated with creating a certain product, "absorption…
Q: 2. A company had an under recovery of overheads of $200,000 with a budgeted overhead of $1,000,000.…
A: The objective of the question is to calculate the actual overhead cost of a company given the under…
Q: À week before the end of Its fiscal year, a company forecasts that it will not meet its target net…
A:
Q: X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the…
A: X company has a mixed cost of maintenance costs using hours as the activity level. Month Hours…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Absorption Costing Method :— Under this method, total manufacturing cost or production cost is the…
Q: Total Product cost per unit? produced 44,000 units and sold 36,000 units at a price of $140 per…
A: Fixed overhead absorption rate = Total fixed overhead Number of units produced = $528,00044,000…
Q: gross margin (loss)
A: Gross Margin is the residual income available after reduction of manufacturing costs and other…
Q: Assume the following: Estimated fixed manufacturing overhead for the coming period of $202, 000…
A: Overheads: These are defined as the ongoing expenses incurred by the business which are not directly…
Q: Based on the above, using the high-low method, determine an estimate of total maintenance cost for a…
A: Solution:- Calculation of production cost using High low method as follows under:-
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Introduction: Total cost is an accounting measure. It includes not only the actual monetary spend…
Q: Vero, Inc. began operations at the start of the current year, having a production target of 68,000…
A: A greater gross margin suggests that a firm keeps a bigger amount of its sales as profit after…
Q: In October, Haldeman Corporation, a manufacturing company, reported data: Sales .. $460,000 Variable…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: Given the following information, determine the amount of Profit or Loss: Cost of sales: $46,000…
A: Cost of sales = $46,000Cost of labor = $54,000Cost of overhead = $39,000Total Sales = $120,000
Q: Garand Company had a predetermined overhead rate of $6.00 per direct labor hour. Budgeted overhead…
A: Overhead cost is applied using the predetermined overhead rate. Predetermined overhead rate is…
Q: The accounting records for Elsner Manufacturing Company Included the following cost information…
A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…
Q: Production costs (18,900 units): Direct materials Direct labor $171,300 235,500 247,300 93,300…
A: Using absorption Costing, all fixed and variable manufacturing costs are included in the product…
Q: At the end of the year, factory overhead applied was $3,744,000. Actual factory overhead was…
A: Applied Overhead is calculated by multiplying predetermined overhead rate by actual usage of cost…
Q: At the end of the year, factory overhead applied was $3,734,000. Actual factory overhead was…
A: Here, first of all we need to find the underapplied /(overapplied) overhead costs.If the applied…
Q: The level of inventory of a manufactured product has increased by 7,871 units during a period. The…
A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…
Q: ABC Company’s operating income was P900,000 under absorption costing and P850,000 under variable…
A: Ending inventory units = Difference in operating income / Fixed overhead per unit
Q: Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit…
A: Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Absorption costing is a method of costing in which product cost is calculated by adding direct…
Q: At the end of the year, overhead applied was $3,675,000. Actual overhead was $3,498,000. Closing…
A: Overhead applied =$3,675,000 Actual Overhead =$3,498,000
Q: Company XYZ made total sales revenue of $400,00 costs were $20,000. The variable selling and admir…
A: Ans. To get contribution margin, variable costs are deducted from sales amount. The variable selling…
Q: overhead erhead S: 234,900 251,700 92,100 $752,000 ng expenses $131,700 expenses 45,600 177,300 ain…
A: Answer : Total production cost per unit : Direct material $173,300 Direct labor 234,900…
Q: A company has $45,000 of net income using absorption costing. Its beginning inventory contained…
A: Fixed overhead is not incorporated in the inventory value in variable costing. Absorption costing,…
Q: The accounting records for Portland Products report the following manufacturing costs for the past…
A: Manufacturing overhead is defined as all indirect costs incurred during the manufacturing process.…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…
Q: A company estimated 118,472 direct labor hours and $896,927 in overhead. The actual overhead was…
A: Pre-determined overhead rate = Budgeted overheads /budgeted labour hours Applied overheads =…
Q: Based on the above, using the high-low method, the estimated fixed cost element is * $22,460 O…
A: Variable cost vary with each unit of production. Fixed cost remain same irrespective of the level of…
Q: A company estimated 116,794 direct labor hours and $813,983 in overhead. The actual overhead was…
A: To price a product you need to calculate the total cost per unit of that product. But overheads are…
Q: The level of inventory of a manufactured product has increased by 7,780 units during a period. The…
A: Cost accounting is one of the special branch of accounting, under which various costs are being…
Q: overhead under- or over-
A: Under-applied overhead = Under-applied overhead occurs when an entity has budgeted overhead less…
Q: X applies overhead on the basis of direct labor hours (DLH). Datas are given: Budgeted overhead…
A: Predetermined overhead rate: It is the rate at which the overhead costs are applied to the products…
Q: A factory incurred the following expenditure during the year ended 31 May 2016:Sh.Direct material…
A: A management report is a comprehensive document prepared by professionals within an organization to…
Q: The normal capacity of an entity is 350 000 units per annum. The raw material cost is R220 per unit…
A: Normal capacity = 350 000 units per annum. Raw material cost = R220 per unit and direct labour =…
Q: A company estimated 117,775 direct labor hours and $804,994 in overhead. The actual overhead was…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…
Q: I want the solution for correct answer
A: Step 1: Introduction to the Absorption Costing:Absorption costing is a method that allocated fixed…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: To calculate the ending inventory under variable costing, we need to determine the total variable…
Q: A company estimated 111,680 direct labor hours and $810,549 in overhead. The actual overhead was…
A: Variance is the result of the amount of expected value and actual results. It can be calculated by…
Q: A company estimated 111,680 direct labor hours and $810,549 in overhead. The actual overhead was…
A: Over/Under Applied Overhead: The difference between manufacturing overhead cost applied to work in…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Introduction: A variable costing income statements report that subtracts variable expenses from…
Q: Using the data below, what is the total for fixed costs? Administrative salaries S75,000…
A: A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or…
Q: The expected total overhead cost when 120,000 machine hours was used is:
A: There are majorly three types of costs: Fixed Cost: Fixed cost refers to a cost that doesn’t change…
Under applied overhead decreases the net profit and over applied increases the net profit.
Over applied overhead= Applied overhead - Actual overhead
Under applied overhead= Actual overhead - Applied overhead
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- During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at year-end. What is the value of ending inventory under variable costing? Multiple Choice $66,000 $115,500 $49,500 $5 $ 3 per unit per unit per unit $ 4 $ 189,000 per year $189,000The revenue account of Goodwill Co. Ltd. Has been summarised as shown below: Sales |60,00,000 |18,00,000 |12,00,000 Direct Materials Direct Wages Variable Overheads Fixed Overheads 4,80,000 |17,20,000 52,00,000 Profit 8,00,000 The licensed capacity of the company is $ 80,00,000 but the proposed by the management that in order to utilise the existing capacity, the selling price of the product should be reduced by 5%. showing the effect of the proposed reduction You are required in selling price after taking into account the following changes in costs : Sales forecast $ 76,00,000 (at reduced prices) (i) (ii) (ii) Direct wages rates and variable overheads are expected to increase by 5%. Direct material prices are expected to increase by 2%. Fixed overheads will increase by $ 80,000. (iv)At the end of the year, overhead applied was $3,657,000. Actual overhead was $3,326,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to
- A company estimated 112,500 direct labor hours and $835,635 in overhead. The actual overhead was $881,112, and there were 106,132 direct labor hours. How much is overhead under- or over- applied? Round to the nearest penny, two decimal places. Enter an overapplied overhead as a negative amount. For example, if it is overapplied by 500.00, the input would be -500.00 do not use parenthesis.At the end of the year, overhead applied was $3,733,000. Actual overhead was $3,156,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to Oa. increase by $1.154.000 Ob. decrease by $577,000 Oc. decrease by $1,154,000 Od. increase by $577,000At the end of the accounting period Tubman, Inc. reports operating income of $50,000, a contribution margin of $15, and a fixed overhead rate of $6 per unit. Under variable costing, if this company produces 100 more units of inventory, then operating income: a. will increase by $1,500 b. will decrease by $1,500 c. will increase by $900 d. will decrease by $900 e. will increase by $600 f. will decrease by $600 g. will not be affected h. Cannot be determined
- Panta Corp had net income of P226,000 based on variable costing. Beginning and ending inventories were 7,400 units and 12,800 units, respectively. Assume the fixed overhead per unit was P5 for both the beginning and ending inventory. What is net income under absorption costing?ABC Company produced 3,000 units and sold 2,500 units. Total fixed manufacturing overhead cost is $12,000. Cost of FG ending inventory under VC is $2,500. How much is FMOH deferred with ending inventory?1. For The period just ended, the gross margin of Robin Company was P 3,840,000, the cost of goods manufactured was P 13,6000,000; the work in process inventory increased by P400,000 and finished goods ending inventories increased by P400,000 during the year, but the materials inventories decreased by P 120,000. Assuming that factory overhead is applied to production at 150% of direct labor cost but only 45% of material cost, how much is the total factory overhead applied to production? 2. A machine shop manufactures a stainless-steel part that is used in an assembled product. Materials charged to a particular job amounted to P6,000. At the point of final inspection, it was discovered that the material used was inferior to the specifications required by the engineering department; therefore, all units had to be scrapped. The revenue received for scrap is to be treated as a reduction in manufacturing cost but cannot be identified with a specific job. A firm price is not determinable for…
- A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $174,500 232,600 249,000 104,200 $760,300 $134,700 43,300 Fixed operating expenses 178,000 If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is O a. $67,318 O b. $70,019 O c. $58,089 O d. $83,0798) Paine Company wishes to determine the fixed portion of its electrical costs (a mixed cost). Management believes that the variable portion of the electrical costs is driven by machine-hours. Information for the previous three months follows: January February March Machine-hours Electrical cost 33,000 31,000 34,000 A) $283. B) $375. (C) $327. D) $408. $600 $585 $610 Using the high-low method, the fixed portion of the company's electrical costs would be estimated to be closest to:Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs 2,900,000 Total overhead 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. b. Determine the total costs per billable hour for year 1 and year 2.