HelpTB MC Qu. 2-69 (Algo) Manufacturing overhead was estimated to be...Manufacturing overhead was estimated to be $261,300 for the year along with 20,100 direct labor hours. Actual manufacturing overhead we$261,000, and actual labor hours were 19,600. Which of the following would be correct?Multiple ChoiceOverhead is underapplied by $17,400.Overhead is underapplied by $6,200.Overhead is overappiled by $6.600Overhead is overapplied by $17A00.

Name: HelpTB MC Qu. 2-69 (Algo) Manufacturing overhead was estimated to be.
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Description: HelpTB MC Qu. 2-69 (Algo) Manufacturing overhead was estimated to be...Manufacturing overhead was estimated to be $261,300 for the year along with 20,100 direct labor hours. Actual manufacturing overhead we$261,000, and actual labor hours were 19,60

Over (under) applied overhead = Applied overhead - Actual overhead where, Applied overhead = Actual…

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ed to be. Manufacturing overhead was estimated to be $261,300 for the year along with 20,100 direct labor hours. Actual manufecturing overhead w $261,000, and actual labor hours were 19,600. Which of the following would be correct? Multiple Choice Overhead is underapplied by $17,400. Overhead is underapplied by $6,200. Overhead is overappled by $6,60o. Overhead is overappled by $17400

ed to be. Manufacturing overhead was estimated to be $261,300 for the year along with 20,100 direct labor hours. Actual manufecturing overhead w $261,000, and actual labor hours were 19,600. Which of the following would be correct? Multiple Choice Overhead is underapplied by $17,400. Overhead is underapplied by $6,200. Overhead is overappled by $6,60o. Overhead is overappled by $17400

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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Arbor, Inc. has estimated overhead to be $315,000 and labor hours to be 35,000. Actual overhead turned out to be $325,000 when 35,500 labor hours were worked. The predetermined overhead rate would be: Multiple Choice 82.39%. $9.00. $9.15. $9.29.
Company has gathered the following information: Variable manufacturing overhead costs $12,240 Fixed manufacturing overhead costs $9,270 Normal production level in labour hours 9,000 Standard labour hours 9,500 During the year, 3,230 units were produced, 10,600 hours were worked, and the actual manufacturing overhead was $20,200. Actual fixed overhead totalled $9,290. Bonita applies overhead based on direct labour hours. (a) Calculate the total, fixed, and variable predetermined overhead rates. (Round calculations and final answer to 2 decimal places, e.g. 15.25.) Fixed predetermined ovehead rate $ per DL hour Variable predetermined ovehead rate $ per DL hour Total predetermined ovehead rate $ per DL hour
Kenmore Fabrication estimated that direct labor cost for the year would be $641,600. The company also estimated that fixed overhead would be $481,200 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($481,200) and variable overhead was also incurred as expected. There was $30,300 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost
The Winchester Company estimates that its overhead costs will amount to $523,600 and the company's manufacturing employees will work 77,000 direct labor hours during the current year. If actual overhead costs for the year amounted to $572,000 and actual labor hours amounted to 82,000, then overhead would be: Multiple Choice underapplied by $14,400. overapplied by $48,400. underapplied by $48,400. overapplied by $14,400.
Kenmore Fabrication estimated that direct labor cost for the year would be $654,400. The company also estimated that fixed overhead would be $490,800 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($490,800) and variable overhead was also incurred as expected. There was $32,700 in underapplied overhead. How much did Kenmore spend on direct labor cost during the period?
Crosshill Company's total overhead costs at various levels of activity are presented below: Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost Total Overhead Cost $200,200 $177,300 $223,100 $246,000 $ 48,000 21,000 108,300 $177,300 The company wants to break down the maintenance cost into its variable and fixed cost elements. Maintenance cost in July Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first betermine how much of the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal places.)
Manufacturing overhead was estimated to be OMR 400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was OMR 415,000, and actual labor hours were 21,000. Which of the following would be correct? O a. None of the given answer is correct b. Overhead is overapplied by OMR 5,000. C. Overhead is underapplied by OMR 5,000. d. Overhead is overapplied by OMR 15,000. e. Overhead is underapplied by OMR 15,000.
Cullumber Company estimates that annual manufacturing overhead costs will be $768,000. Estimated annual operating activity bases are: direct labor cost $588,800, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $769,280 and the actual direct labor cost for the year was $583,680. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000. Cullumber applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount. (Round predetermined overhead rate to 2 decimal places, e.g. 15.25 and all other answers to O decimal places, e.g. 1,525.) Predetermined overhead rate $ Manufacturing overhead applied $ $ per direct labor hour
What is the right choice
Emma Corporation uses an overhead absorption rate of $3·50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to $108,875 and 30,000 machine hours were recorded on actual production. By how much was the total overhead under or over absorbed for the period? a. Under absorbed by $3,875b. Under absorbed by $7,000c. Over absorbed by $3,875d. Over absorbed by $7,000
It takes 100,000 direct labor hours to manufacture the product. Total overhead for the product is $400,000. Using the traditional cost method of direct labor hours, what is the predetermined overhead rate? $0.25 per direct labor hour $4.00 per direct labor hour $4.50 per direct labor hour $3.80 per direct labor hour
Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is a.$48 per machine hour b.$45 per machine hour c.$50 per machine hour d.$62 per machine hour