Accounting question Atlas Manufacturing estimates manufacturing overhead of$2,400,000 for 2024 and plans to apply overhead basedon 500,000 machine hours. During 2024, Atlas used:•Raw materials: $1,200,000•Direct labor: $3,600,000Actual machine hours: 495,000.Units produced: 1,500,000

Step 1: DefinitionThe predetermined overhead rate is an estimated rate used to allocate…

Answered: Atlas Manufacturing estimates…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

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Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
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Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
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Brandi Manufacturing estimates manufacturing overhead of $3,500,000 for 2024 and will apply overhead to units produced based on 800,000 machine hours. During 2024, Brandi used $1,850,000 of raw materials, paid $5,210,000 in direct labor, generated 790,000 machine hours, and produced 2,500,000 units. Required: Calculate Brandi's predetermined overhead rate and cost per unit of production for 2024.
Bramble Company has developed the following standard costs for its product for 2022: Product A Cost Component Direct materials Direct labor Manufacturing overhead . . Actual results for 2022 are as follows: . BRAMBLECOMPANY Standard Cost Card . Standard Quantity 4 pounds 3 hours 3 hours O = Standard Price X $3 8 The company expected to produce 32,500 units of Product A in 2022 using 97,500 direct labor hours. C 4 C Standard Cost $12 24 - 12 $48 33,510 units of Product A were produced. Actual direct labor costs were $807,700 for 98.500 direct labor hours worked. Actual direct materials purchased and used during the year cost $380.875 for 138,500 pounds. Actual variable overhead incurred was $169.000 and actual fixed overhead incurred was $221.000 Compute the following variances showing all computations to support your answers. Indicate whether the variances are favor unfavorable.
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Assume you made the following two predictions for 2022 for one of your production facilities: Total manufacturing overhead for the year $15,000,000Total direct labor hours for the year 800,000 Actual results for July 2022 were as follows: Manufacturing overhead $1,238,500Direct labor hours 98,500 Calculate the predetermine overhead rate per direct labor hour for 2022.
Jeremy Inc. forecasts that total overhead for the current year will be $1,050,000 with 700,000 total machine hours. Year to date, the actual overhead is $1,200,000 and the actual machine hours are 850,000 hours. The company uses a predetermined overhead rate based on machine hours for applying overhead. As of this point in time (year to date), the amount of allocated overhead is what? Group of answer choices $987,000 $1,200,000 $1,050,000 $1,275,000

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Atlas Manufacturing estimates manufacturing overhead of $2,400,000 for 2024 and plans to apply overhead based on 500,000 machine hours. During 2024, Atlas used: • Raw materials: $1,200,000 • Direct labor: $3,600,000 Actual machine hours: 495,000 . Units produced: 1,500,000