Crestor Corporation makes musical instruments using the latest available technology. The company applies manufacturing overheads cost to products on the basis of machine-hours. The estimated manufacturing overhead costs was $900,000 for an estimated activity level of 75,000 machine-hours. During the year, company utilised machine-hours equals 60,000 and manufacturing overhead cost incurred amounts to $850,000. Calculate the underapplied or overapplied overhead. a. $130,000 overapplied b. $130,000 underapplied c. $275,000 underapplied d. $250.000 overapplied

Crestor Corporation makes musical instruments using the latest available technology. The company applies manufacturing overheads cost to products on the basis of machine-hours. The estimated manufacturing overhead costs was $900,000 for an estimated activity level of 75,000 machine-hours. During the year, company utilised machine-hours equals 60,000 and manufacturing overhead cost incurred amounts to $850,000. Calculate the underapplied or overapplied overhead. a. $130,000 overapplied b. $130,000 underapplied c. $275,000 underapplied d. $250.000 overapplied

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Description: Crestor Corporation makes musical instruments using the latest available technology. Thecompany applies manufacturing overheads cost to products on the basis of machine-hours. Theestimated manufacturing overhead costs was $900,000 for an estimated a

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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Sandler Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated machine hours 73,000 Estimated variable manufacturing overhead 3.49 per machine hour Estimated total fixed manufacturinf overhead 838,770 Required: Compute the company's predetermined overhead rate.
Winston Company estimates that total factory overhead for the following year will be $1,347,500. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 38,500 hours. The actual total machine hours for the year were 54,300 hours. The actual factory overhead for the year was $1,927,000. Enter the amount as a positive number. a. Determine the total factory overhead applied. Round to the nearest dollar. b. Compute the over- or underapplied factory overhead for the year. c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank.
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Gilchrist Corporation bases its predetermined overhead rate on the estimated machine - hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine - hours for the upcoming year at 22, 900 machine - hours. The estimated variable manufacturing overhead was $6.67 per machine - hour and the estimated total fixed manufacturing overhead was $ 665,932. The predetermined overhead rate for the recently completed year was closest to:
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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