Cavy Company estimates that the factory overhead for the following year will be $1,066,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 41,000 hours. The machine hours for the month of April for all of the jobs were 5,400. Journalize the entry to record the factory overhead applied in April. If an amount box does not require an entry, leave it blank. Work in Process Factory Overhead

Cavy Company estimates that the factory overhead for the following year will be $1,066,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 41,000 hours. The machine hours for the month of April for all of the jobs were 5,400. Journalize the entry to record the factory overhead applied in April. If an amount box does not require an entry, leave it blank. Work in Process Factory Overhead

Name: Cavy Company estimates that the factory overhead for the following ye
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Description: Cavy Company estimates that the factory overhead for the following year will be $1,066,000. The company has decided that the basis for applyingfactory overhead should be machine hours, which is estimated to be 41,000 hours. The machine hours for the

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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In December, a company was calculating the predetermined factory overhead rate for the upcoming year, based on machine hours, using the following estimated costs: direct materials $ 550,000, direct labor $ 350,000; factory overhead $ 175,000, sales expenses $ 40,000, general and administrative expenses $ 35,000. The following estimates were also available: direct labor hours 500; machine hours 250 Calculate the predetermined overhead rate for the upcoming year. Multiple Choice $500 per direct labor hour. $650 per machine hour. $350 per direct labor hour. $500 per direct labor hour. $650 per machine hour. $350 per direct labor hour. $1,000 per machine hour. $700 per machine hour.
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $353,700 and direct labor hours would be 47,300. Actual manufacturing overhead costs incurred were $319,500, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a Oa. debit to Factory Overhead for $391,952 Ob. credit to Factory Overhead for $391,952 Oc. debit to Factory Overhead for $319,500 Od. credit to Factory Overhead for $353,700
Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1, 710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows: Work-in-process inventory $ 33,810 Finished goods inventory $ 270,480 Cost of goods sold $ 1,386, 210 Required: Prepare an entry to allocate the over- or underapplied overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
DEF Co. uses a job costing system. Normal costing is used and factory overhead is applied on the basis of machine hours. At the beginning of the year, management estimated that the company would incur P1,007,500 of factory overhead costs and use 77,500 machine-hours. DEF Co. recorded the following events during the month of April: a) Purchased 180,000 pounds of materials on account; the cost was P2.50 per pound. b) Issued120,000 pounds of materials to production. Of this amount, 15,000 pounds were used as indirect materials. c) Direct labor costs incurred was P240,000 and indirect labor costs incurred were P50,000. d) Depreciation on equipment for the month amounted to P15,700. e) Insurance costs were P3,500 for the manufacturing property f) Paid 8,500 cash for utilities and other miscellaneous items for the manufacturing plant. g) Ob E5 costing P6,500 and Job F4 costing P77,00 were completed during the month and transferred to the Finished Goods account. h) Job F4 was shipped to the…
Thomlin Company forecasts that total overhead for the current year will be $11,661,000 with 181,000 total machine hours. Year to date, the actual overhead is $7,739,000 and the actual machine hours are 98,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.
Cavy Company estimates that the factory overhead for the following year will be $1,699,200. The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 28,800 hours. There are 1,660 machine hours for all of the jobs in the month of April. What amount will be applied to all of the jobs for the month of April?
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Your Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated its predetermined overhead rate to be $4 per direct labor hour since it estimated total manufacturing overhead cost at $400,000 and direct labor-hours at 100,000 hours. The actual overhead cost incurred during the year was $370,000 and the actual direct labor-hours incurred on jobs during the year was 90,000 hours. What is the difference between the applied manufacturing overhead and the actual manufacturing overhead? O $30,000 underapplied O $10,000 underapplied O $10,000 overapplied O $30,000 overapplied
Cavy Company estimates that the factory overhead for the following year will be $1,788,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 29,800 hours. The machine hours for the month of April for all of the jobs were 4,770. If the actual factory overhead for April totaled $280,190, determine the over- or underapplied amount for the month. Enter the amount as a positive number.