Creative Lighting Incorporated makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company's fiscal year, $58,110 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of $5.85 per direct labor hour. Exercise 13-18 (Algo) Part c c. Identify two possible explanations for the overapplied or underapplied overhead. Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Actual costs were less than anticipated. More hours were worked. Additional variable costs. Additional fixed costs. Allocated costs less than anticipated.

Creative Lighting Incorporated makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company's fiscal year, $58,110 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of $5.85 per direct labor hour. Exercise 13-18 (Algo) Part c c. Identify two possible explanations for the overapplied or underapplied overhead. Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Actual costs were less than anticipated. More hours were worked. Additional variable costs. Additional fixed costs. Allocated costs less than anticipated.

Name: Creative Lighting Incorporated makes specialty table lamps. Manufactu
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Description: Creative Lighting Incorporated makes specialty table lamps. Manufacturing overhead is applied to production on adirect labor hours basis. During June, the first month of the company's fiscal year, $58,110 of manufacturing overheadwas applied to Work

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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ll. Subject : - Accounting
[The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March). Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Job 306 $ 34,200 25,200 15,200 Additional Information a. Raw Materials Inventory has a March 31 balance of $85,200. 148,000 90,200 ? Finished (sold) Predetermined overhead rate Overhead applied 306 Job 307 b. Raw materials purchases in April are $513,000, and total factory payroll cost in April is $376,000. c. Actual overhead costs incurred in April are indirect materials, $53,250; indirect labor, $26,250; factory rent, $35,250; factory utilities, $22,250; and factory equipment depreciation, $54,250. $ 40,200 23, 200 14, 200 d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $648,000 cash in April. 307 233,000…
6. Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $943,360 $686,700 Estimated direct labor hours for year 10,900 Estimated machine hours for year 21,440 Actual factory overhead costs for March $75,320 $59,270 Actual direct labor hours for March 980 Actual machine hours for March 1,670
Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $1,337,700 $950,400 Estimated direct labor hours for year 26,400 Estimated machine hours for year 51,450 Actual factory overhead costs for March $110,730 $107,750 Actual direct labor hours for March 2,940 Actual machine hours for March 4,320 Required: a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the Mar. 31 entries to apply factory overhead to production in each factory. Refer to the chart of accounts for the exact wording of the account titles. d. Determine the balances of the factory overhead…
Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projects using predetermined overhead rates. In the Installation Division, overhead is applied on the basis of direct labour hours, and in the Disposal Division, overhead is applied on the basis of debris tonnage hauled to the landfill. At the beginning of the current year, management made the following budget estimates to determine overhead application rates. Annual Estimates Direct labor Manufacturing overhead Direct labor hours Tons of Debris 1 Job no. 652 (8,348 square-feet): Cost of material used on job Direct labor cost Direct labor hours Tons of debris Installation Disposal $750,000 $120,000 $100,000 $36,000 25,000 10,000 300 Job #652 for Bees Grocery measured 8,348 square-feet. The job was started and completed in May. Information pertaining to this project is provided below. Installation Disposal $30,000 $1,000 $7,800 $1,100 250 0 80 7 c. Prepare the journal entries required to record…
XYZ Company uses a job costing system and applies manufacturing overhead using a predetermined overhead rate based on direct labor hours. Information for the current year is as follows: Estimated manufacturing overhead OMR65,000; Actual manufacturing overhead OMR63,000; Estimated direct labor hours 20,000; Actual direct labor hours 22,000. The amount of over- or underapplied overhead for the year was Select one: O a. OMR2,000 overapplied O b. OMR2,000 underapplied c. None of the answers given d. OMRZ500 overapplied e. OMR8,500 underapplied 1 OMR8,500 overapplied
Company XYZ applies overhead cost to jobs on the basis of direct labor cost. Job A, which was started and completed during the current period, shows charges of $15,000 for direct materials, $13,000 for direct labor, and $26,000 for overhead on its job cost sheet. Job B, which is still in process at year-end, shows charges of $12,400 for direct materials and $24,000 for applied overhead. Direct labor cost of Job B at year-end is: Select one: a. $12,000 b. None of the answers given c. $36,400 d. $11,000 e. $13,000
Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during September. During the same period, the Manufacturing Overhead applied to Work in Process was $89,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: A. debit to Work in Process of $89,000. B. credit to Manufacturing Overhead of $87,000. C. debit to Manufacturing Overhead of $87,000. D. credit to Work in Process of $89,000.
Waterway Manufacturing assigns overhead based on machine hours. Department R records 608 machine hours, while Department W records 392 machine hours for the period. The overhead rate is $6 per machine hour. What will the entry to assign overhead include? Select answer from the options below A debit to Manufacturing Overhead for $6000. A credit to Manufacturing Overhead for $6000. A debit to Work in Process Inventory-Department W for $2352. A credit to Work in Process Inventory-Department R for $3648.
The Wonder Drug Company's total overhead costs at various levels of activity are presented below: Month September October November December Assume that the overhead costs above consist of indirect labor, scheduling salaries, and maintenance. The breakdown of these costs for the month of November is as follows: Indirect labor (V) Maintenance (M) Scheduling Salaries (F) a. Direct Labor Hours 15,000 12,000 18,000 21,000 Total Overhead Direct Labor Hours High Required: (a.) Using the high-low method, determine the cost formula for maintenance. (b.) Express the company's total overhead costs in linear equation form. $ 21,000 $ 219,600 197,400 125,000 542,000 Low 12,000 Total Overhead $ 472,000 409,400 542,000 604,700 Difference
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