Hello tutor please provide this question solution accounting Digger Inc. sells a high-speed retrieval system for mining information. Itprovides the following information for the year.BudgetedActualOverhead cost$1,122,000 $1,092,000Machine hours56,20048,700Direct labor hours 102,00098,0001. Compute the predetermined overhead rate.2. Determine the amount of overhead applied for the year.

Step 1: Define Predetermined Overhead RateAs manufacturing overhead cannot be directly traceable to…

Answered: Digger Inc. sells a high-speed…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...

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Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year. Budgeted Actual Overhead cost $1,513,600 $1,486,600 Machine hours 56,600 47,700 Direct labor hours 110,000 104,000 Overhead is applied on the basis of direct labor hours. Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate per direct labor hour LINK TO TEXT INTERACTIVE TUTORIAL Determine the amount of overhead applied for the year. Amount of overhead applied
Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year. Budgeted Actual Overhead cost $1,522,610 $1,494,610 Machine hours 58,000 49,600 Direct labor hours 107,000 102,500 Overhead is applied on the basis of direct labor hours. (a) Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate per direct labor hour
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A company has identified the following overhead costs and cost drivers for the coming year. Overhead item Cost driver Budgeted Activity Budgeted Overhead Machine set – up Number of sets – up 200 P 20,000 Inspection Number of inspections 6,500 P130,000 Material handling Number of materials moves 8,000 P 80,000 Engineering Number of engineering hours 1,000 P 50,000 Total P 280,000 The following information was collected on three jobs that were completed during the year: Job 101 Job 102 Job 103 Direct materials P 5,000…
Audio Zone Co. needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months. Total Machine Month Overhead Hours Jan. $6, 288 1,980 Feb. 6,460 2,090 Mar. 5,987 1,745 Apr. 5,559 1,560 Мay 6,032 1,865 June 6,341 2,012 Using the high-low method, total monthly fixed overhead cost is calculated to be:
A company estimates its manufacturing overhead will be $630,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 72,000 $______ per direct labor hour B. Budgeted direct labor expense: $1,800,000 $_____ per direct labor dollar C. Estimated machine hours: 120,000 $_____ per machine hour
The following information was gathered for the Milestone Company for the year: Budgeted overhead cost $300,000 Actual overhead cost $295,000 Budgeted activity 30,000 machine hours Actual activity 28,000 machine hours The overhead application rate is a.$9.83 b.none of these c.$10.54 d.$10.71 e.$10.00
A manufacturing company estimates it will incur $240,000 of overhead costs in the next year. The company allocates overhead using machine hours, and estimates it will use 1,600 machine hours in the next year. During the month of June, the company used 80 machine hours on Job 1 and 70 machine hours on Job 2. 1. Compute the predetermined overhead rate to be used to apply overhead during the year. Predetermined Overhead Rate Estimated Overhead Costs Estimated Activity Base 2. Determine how much overhead should be applied to Job 1 and to Job 2 for June. OH Applied x Predetermined OH rate Machine Hours Used 80 hours 70 hours 150 hours Job 1 Job 2 Total 3. Prepare the journal entry to record overhead applied for June. General Journal Work in Process Inventory Factory Overhead Debit Credit Learning Objective P3: Describe and record the flow of overhead costs in job order costing
Direct labor hours are estimated as 1,800 In Quarter 1; 1,900 In Quarter 2; 1,700 In Quarter 3; and 2,100 In Quarter 4. $18,000 5,000 6,000 3,500 Indirect material per hour $1.00 Supervisory salaries Indirect labor per hour 1.20 Maintenance Salarles Maintenance per hour 0.20 Property taxes and Insurance Utilities per hour 0.50 Depreciation Prepare a manufacturing overhead budget using the above overhead Information. Manufacturing Overhead Budget For the Year Ending Dec. 31, 2020 Quarter 1 Quarter 2 Quarter 3 Variable Costs Indirect Material Indirect Labor Maintenance Utilities Total Variable Manufacturing Costs Fixed Costs Supervisory Salaries Maintenance Salaries Property Taxes and Insurance Depreciation Total Fixed Manufacturing Costs Total Manufacturing Overhead 1,800 $ 1,900 $ 1,700 $ 2,100 $ 2,160 2,280 2,040 2,520 360 340 900 850 5,220 18,000 $ 5,000 6,000 3,500 32,500 37,720 $ +A 380 950 5,510 $ Quarter 4 4,930 18,000 $ 18,000 $ 5,000 5,000 6,000 6,000 3,500 3,500 32,500 $…
The following information is provided for the year: Actual overhead $225,000 Actual machine hours worked 25,000 Budgeted machine hours 20,000 Applied overhead $200,000 The budgeted overhead used to calculate the predetermined rate must have been
The allocation base of the company is machine-hours and the estimated amount of theallocation base for the upcoming year is 43,000 machine-hours. In addition, the actual activityfor the year is 42,600 machine-hours. All of the manufacturing overhead is fixed and is P848,820per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for theyear as well as the actual amount of manufacturing overhead for the year. Job F3, which required310 machine-hours, is one of the jobs worked on during the year. Determine the underapplied or overapplied overhead for the year if the predeterminedoverhead rate is based on the estimated amount of the allocation base. _______________
The allocation base of the company is machine-hours and the estimated amount of theallocation base for the upcoming year is 43,000 machine-hours. In addition, the actual activityfor the year is 42,600 machine-hours. All of the manufacturing overhead is fixed and is P848,820per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for theyear as well as the actual amount of manufacturing overhead for the year. Job F3, which required310 machine-hours, is one of the jobs worked on during the year. 2. Determine how much overhead would be applied to Job F3 if the predetermined overhead rateis based on estimated amount of the allocation base. _______________

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