Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be 75% of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate .the predetermined overhead rate

Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be 75% of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate .the predetermined overhead rate

Name: Company XYZ uses labor hours to allocate its manufacturing overhead.
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Description: Company XYZ uses labor hours to allocate its manufacturing overhead. Thedirect labor cost rate is $8 per direct labor hour. The company estimatesthat the number of labor hours to be used next month is 600,000 laborhours. The estimated variable overh

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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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?
Marquis Company estimates that annual manufacturing overhead costs will be $894,600. Estimated annual operating activity bases are direct labor cost $497,000, direct labor hours 49,700, and machine hours 99,400.Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50% or 10.50.) Overhead rate per direct labor cost enter percentages rounded to 2 decimal places % Overhead rate per direct labor hour $enter a dollar amount rounded to 2 decimal places Overhead rate per machine hour
At the beginning of the year, Monroe Company estimates annual overhead costs to be $1,600,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is a. $1,600,000. b. $1,523,809. c. $1,120,000. d. $1,680,000.
A company estimates the following manufacturing costs for the next period: direct labor, $540,000; direct materials, $221,000; and factory overhead, $148,000. 1. Compute its predetermined overhead rate as a percent of direct labor.2. Compute its overhead cost as a percent of direct materials.
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 31,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $517,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $670,239 and its actual total direct labor was 31,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. Predetermined overhead rate $ 22.13 X per DLH
The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the beginning of the year the company expects fixed overhead costs to be $600,000 and variable costs to be $800,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. The actual fixed overhead costs are $700,000 and the actual variable overhead costs are $750,000. The actual machine hours during the year are 5,500 and the actual direct labor hours are 90,000.a. How much overhead is allocated?b. What is the over/underabsorbed overhead?
Bestman Clothing Company uses direct labor hours method for applying manufacturing overhead. The overhead application rate for 2018 is 17.20 per hour, based on anticipated fixed costs of 696,000 and anticipated variable cost of 1,386,000. with an expected volume of 240,000 labor hours. During the year the company actually operated for 231,600 hours, incurring fixed overhead of 696,000 and variable overhead Of 1,275,760 Question: What is the under or over applied manufacturing overhead for the year?
Richards Manufacturing estimates the following activity for the coming year: ⚫ expected production 20 000 units ⚫ expected direct labour hours 20 000 hours ⚫ expected manufacturing overhead $200 000. Manufacturing overhead is allocated on the basis of direct labour hours. At the end of the financial period, the following information was collected: ⚫ direct labour hours 18 000 hours ⚫ manufacturing overhead $240 000. a. Calculate the predetermined manufacturing overhead rate at the beginning of the year. b. Calculate the actual manufacturing overhead rate for the year.
Kingsley Products estimated that direct labor for the year would be 64,320 hours. The company also estimated that the fixed overhead cost for the year would be $160,800. They further estimated the variable overhead cost to be $4.00 per direct labor-hour. All overhead at Kingsley Products is applied on the basis of direct labor-hours. During the year, fixed overhead costs were exactly as planned ($160,800). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as $18,600.