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Calculate and Use Overhead Rate During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data Direct material (16,000 lb.) $ 224,000 Direct labor (@ $20.00/hr.) Indirect material 280,000 33,600 Indirect labor 61,600 Sales commissions 95,200 Factory administration 44,800 Non factory administrative expenses 56,000 Other manufacturing overhead 134,400 *Provides for operating 70,000 machine hours. a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours. Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to the nearest one decimal place percentage, when applicable (example: 76.4%). Manufacturing Application base overhead rate Direct labor hours $ Direct labor costs Machine hours b. For each item in requirement a, determine the proper application of manufacturing overhead to Job 63, to which 32 direct labor hours, $420 of direct labor cost, and 112 machine hours have been charged. Round answers to two decimal places, when applicable. Application base Overhead applied to Job 63 Direct labor hours $ Direct labor costs Machine hours

Calculate and Use Overhead Rate During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data Direct material (16,000 lb.) $ 224,000 Direct labor (@ $20.00/hr.) Indirect material 280,000 33,600 Indirect labor 61,600 Sales commissions 95,200 Factory administration 44,800 Non factory administrative expenses 56,000 Other manufacturing overhead 134,400 *Provides for operating 70,000 machine hours. a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours. Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to the nearest one decimal place percentage, when applicable (example: 76.4%). Manufacturing Application base overhead rate Direct labor hours $ Direct labor costs Machine hours b. For each item in requirement a, determine the proper application of manufacturing overhead to Job 63, to which 32 direct labor hours, $420 of direct labor cost, and 112 machine hours have been charged. Round answers to two decimal places, when applicable. Application base Overhead applied to Job 63 Direct labor hours $ Direct labor costs Machine hours

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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Calculate and Use Overhead Rate During the comìng accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data Direct material (16,000 lb.) $ 224,000 Direct labor (@ $20.00/hr.) 280,000 Indirect material 33,600 Indirect labor 61,600 Sales commissions 95,200 Factory administration 44,800 Non factory administrative expenses 56,000 Other manufacturing overhead* 134,400 *Provides for operating 70,000 machine hours. a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours; (2) direct labor costs, and (3) machine hours. Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to the nearest one decimal place percentage, when applicable (example: 76.4%). Manufacturing Application base overhead rate Direct labor hours $ Direct labor costs 96 Machine hours b. For each item in requirement a, determine the proper application of manufacturing overhead to Job 63, to which 32 direct labor hours, $420 of-direct labor cost, and 112 machine hours have been charged. Round answers to two decimal places, when applicable. Application base Overhead applied to Job 63 Direct labor hours $ Direct labor costs Machine hours
Transcribed Image Text:Calculate and Use Overhead Rate During the comìng accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data Direct material (16,000 lb.) $ 224,000 Direct labor (@ $20.00/hr.) 280,000 Indirect material 33,600 Indirect labor 61,600 Sales commissions 95,200 Factory administration 44,800 Non factory administrative expenses 56,000 Other manufacturing overhead* 134,400 *Provides for operating 70,000 machine hours. a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours; (2) direct labor costs, and (3) machine hours. Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to the nearest one decimal place percentage, when applicable (example: 76.4%). Manufacturing Application base overhead rate Direct labor hours $ Direct labor costs 96 Machine hours b. For each item in requirement a, determine the proper application of manufacturing overhead to Job 63, to which 32 direct labor hours, $420 of-direct labor cost, and 112 machine hours have been charged. Round answers to two decimal places, when applicable. Application base Overhead applied to Job 63 Direct labor hours $ Direct labor costs Machine hours
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