Company XYZ uses direct labor hours to allocate its manufacturing overhead. The companyestimates that total direct labor hours to be operated next year are 250,000 hours. Theestimated variable overhead is OMR10 per hour and the estimated fixed overhead costs areOMR750,000. Calculate the predetermined overhead rate.Select one:a. OMR3.00b. OMRO.08C. None of the answers givend. OMR14.00OMB13.00

Predetermined overhead rate: It can be defined as a rate that is used by the business to allocate…

Answered: Company XYZ uses direct labor hours to…

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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A company estimates the following manufacturing costs at the beginning of the period: direct labor, $488,000; direct materials, $204,000; and factory overhead, $137,000. Required: 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its predetermined overhead rate as a percent of direct materials. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its predetermined overhead rate as a percent of direct labor. Numerator: Overhead Rate Denominator: Overhead Rate = Overhead Rate
The production department of Al Noor company provides you with specific cost details. The material used OMR 34,750, Direct labor hours used: 1200 Hours, direct wages OMR 25,000. Overhead Cost is 69,500. Using these data, compute overhead rate as a percentage of direct material cost. a. 50% b. 150% c. None of these d. 20096
Applying Factory Overhead Jernigan Company estimates that total factory overhead costs will be $378,000 for the year. Direct labor hours are estimated to be 27,000. a. For Jernigan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places.$fill in the blank fb95c2fa601df9b_1 per direct labor hour b. During August, Jernigan Company accumulated 550 hours of direct labor costs on Job 40 and 520 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August.$fill in the blank fb95c2fa601df9b_2 c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.
Manufacturing overhead was estimated to be OMR 200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was OMR 215,000, and actual labor hours were 21,000. Which of the following would be correct? Overhead is underapplied by OMR 15,000. a. O b. None of the given answer is correct Overhead is underapplied by OMR 5,000. O c. O d. Overhead is overapplied by OMR 5.00O. De. Overhead is overapplied by OMR 15.000. NEXT DAGE
XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During the year it incurred P345,000 dollars of actual overhead, but it planned to incur P360,000 of overhead. The company applied P363,000 of overhead during the year. How many actual direct labor hours did the company incur?
At the beginning of a year, a company predicts total direct materials costs of $920,000 and total overhead costs of $1,170,000. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? Choose Numerator: Predetermined overhead rate I Choose Denominator: 1 I H = Rate Rate
Manufacturing overhead was estimated to be OMR 415,000 for the year along with estimated 20,000 direct labor hours. Actual manufacturing overhead was OMR 400,000, and actual labor hours were 21,000. The amount credited to the Manufacturing Overhead account would be: O a. OMR 420,000. O b. OMR 400,000. O c. OMR415,000. O d. OMR 435,750. e. None of the given answer is correct
Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead Actual machine-hours for the year The predetermined overhead rate for the recently completed year was closest to: Multiple Choice O O $6.73 per machine-hour $28.56 per machine-hour $29.05 per machine-hour O $22.32 per machine-hour 35,900 $ 6.73 per machine-hour $ 801,288 33,300
I need all parts of this question answered Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 66,000 labor-hours. The estimated variable manufacturing overhead was $8.41 per labor-hour and the estimated total fixed manufacturing overhead was $1,533,180. The actual labor-hours for the year turned out to be 68,400 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year.
Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of the year, it estimated total manufacturing overhead costs to be $1,040,000, total number of direct labor hours to be 4,500, and total number of machine hours to be 24,000 hours. What was the predetermined overhead allocation rate? (Round your answer to the nearest cent.) A. $36.49 per direct labor hour B. $231.11 per machine hour C. $53.33 per direct labor hour D. $43.33 per machine hour
Online A company uses direct labor-hours for its predetermined overhead rate. The company estimated direct labor-hours would be 25,000 hours and the total estimated manufacturing overhead would be $500,000. At the end of the year, actual direct labor-hours for the year were 23,000 hours and the actual manufacturing overhead for the year was $490,000. Overhead at the end of the year was: (Do not round your intermediate calculations.) Multiple Choice
6. Darrow Company uses a predetemined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 10,000 direct labor-hours and incurred S80,000 of actual manufacturing overhead cost. If overhead was underapplied by $2.000, the predetermined overhead rate for the company for the year must have been: $7.80 $8.00 $8.20 $8.40

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