Determining overhead rates, using direct labor cost, direct labor hour, and machine hour methods; determining job cost; computing underapplied and overapplied overhead. MaterialsCostDirectLaborDirectMachineHoursDate JobsJobLabor CostCompletedHours6,00012,00014,5002,0003,0003,5004,0004,2005,0004,4007,5002,500 In process10-Nov14-Nov20-Nov1016,0008,0009,00010210310410,00016,600In process3,6005,50010511,00030,00026-Nov10612,0003,400500Abbey Products Company is studying the results of applying factory overhead toproduction. The following data have been used:a. Estimated factory overhead, $70,000.b. Estimated materials costs,c. Estimated direct labor costs,d. Estimated direct labor hours,e. Estimated machine hours,f. Work in process at the beginning of the month, none.$60,000.$70,000.20,00035,000The actual factory overhead incurred for November was $80,000, and theproduction statistics on November 30 are as follows:

Overhead rates refer to the rate determined by dividing the total overheads by the total units of…

Direct Labor Hours Machine Hours Date Jobs Completed Materials Direct Labor Cost Job Cost 6,000 8.000 9.000 10,000 11,000 12,000 6,000 12,000 14,500 16,600 30,000 3.400 4,000 4,200 5,000 4,400 In process 101 2,000 3,000 3,500 3,600 5,500 500 10-Nov 14-Nov 102 103 20-Nov 104 105 26-Nov 2,500 In process 7,500 106 Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: a. Estimated factory overhead, $70,000. b. Estimated materials costs, c. Estimated direct labor costs, d. Estimated direct labor hours, e. Estimated machine hours, f. Work in process at the beginning of the month, none. $60,000. S70,000. 20,000 35,000 The actual factory overhead incurred for November was $80,000, and the production statistics on November 30 are as follows:

Direct Labor Hours Machine Hours Date Jobs Completed Materials Direct Labor Cost Job Cost 6,000 8.000 9.000 10,000 11,000 12,000 6,000 12,000 14,500 16,600 30,000 3.400 4,000 4,200 5,000 4,400 In process 101 2,000 3,000 3,500 3,600 5,500 500 10-Nov 14-Nov 102 103 20-Nov 104 105 26-Nov 2,500 In process 7,500 106 Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: a. Estimated factory overhead, $70,000. b. Estimated materials costs, c. Estimated direct labor costs, d. Estimated direct labor hours, e. Estimated machine hours, f. Work in process at the beginning of the month, none. $60,000. S70,000. 20,000 35,000 The actual factory overhead incurred for November was $80,000, and the production statistics on November 30 are as follows:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Determining overhead rates, using direct labor cost, direct labor hour, and machine hour methods; determining job cost; computing underapplied and overapplied overhead.

Materials
Cost
Direct
Labor
Direct
Machine
Hours
Date Jobs
Job
Labor Cost
Completed
Hours
6,000
12,000
14,500
2,000
3,000
3,500
4,000
4,200
5,000
4,400
7,500
2,500 In process
10-Nov
14-Nov
20-Nov
101
6,000
8,000
9,000
102
103
104
10,000
16,600
In process
3,600
5,500
105
11,000
30,000
26-Nov
106
12,000
3,400
500
Abbey Products Company is studying the results of applying factory overhead to
production. The following data have been used:
a. Estimated factory overhead, $70,000.
b. Estimated materials costs,
c. Estimated direct labor costs,
d. Estimated direct labor hours,
e. Estimated machine hours,
f. Work in process at the beginning of the month, none.
$60,000.
$70,000.
20,000
35,000
The actual factory overhead incurred for November was $80,000, and the
production statistics on November 30 are as follows:

Definition Definition Accounting technique that tracks the costs of materials, labor, and overhead for a particular job. The main purpose of job costing is to determine the profit or loss for each job. Repetitive work or poorly allocated employees can be addressed for the upcoming project through job costing.

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