EX 19-8 Factory overhead rates, entries, and account balanceOBJ. 2Sundance Solar Company operates two factories. The company applies factory overhead to jobson 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 1Factory 2Estimated factory overhead cost for fiscalyear beginning March 1Estimated direct labor hours for year$12,900,000$10,200,000250,000Estimated machine hours for year600,000Actual factory overhead costs for March$12,990,000$10,090,000Actual direct labor hours for March245,000Actual machine hours for March610,000a. Determine the factory overhead rate for Factory 1.b. Determine the factory overhead rate for Factory 2.c. Journalize the entries to apply factory overhead to production in each factory forMarch.d. Determine the balances of the factory overhead accounts for each factory as ofMarch 31 and indicate whether the amounts represent over- or underapplied fac-tory overhead.

Answered: EX 19-8 Factory overhead rates,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Exercise 11-4A (Algo) Calculating applied overhead LO 11-2 Stuart, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation $ 191,000 Supplies 20,000 Materials handling 33,400 Property taxes 14,800 Production setup 19,800 Rent 45,000 Maintenance 39,300 Supervisory salaries 315,100 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 215,000 and for machines were 128,000.Required Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 143,000. (Do not round intermediate calculations.)
Q3 Ex. 184 Landis Company uses a job order cost system in each of its two manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A and machine hours in Department B. In establishing the predetermined overhead rates for 2013, the following estimates were made for the year: Department Manufacturing overhead Direct labor cost Direct labor hours Machine hours Direct materials used Direct labor cost A $2,100,000 1,400,000 Manufacturing overhead incurred Direct labor hours Machine hours 100,000 200,000 During January, the job cost sheet showed the following costs and production data: Department A $195,000 100,000 155,000 B $1,600,000 1,200,000 8,000 16,000 100,000 400,000 B $128,000 110,000 135,000 8,400 34,000 Instructions (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing cost assigned to jobs in January in each department. (c) Compute the balance in the Manufacturing Overhead…
11
Exercise 7-40 (Algo) Calculating Expected Activity Using the Predetermined Overhead Rate (LO 7-3) Auduon, Incorporated uses a predetermined factory overhead rate based on machine-hours. For October, Audubon recorded $5.300 In overapplied overhead, based on 34.900 actual machine-hours worked and actual manufacturing overhead incurred of $599,517 Audubon estimated manufacturing overhead for October to be $568,424. Required: What was the estimated number of machine-hours Audubon expected in October? Note: Do not round intermediate calculations. Expected machine-hours machine-hours
QS 19-17 (Algo) Preparing a schedule of cost of goods manufactured LO P3 Shen Company reports the costs incurred below for the month ended May 31 The company has no beginning Work in Process Inventory. Overhead is applied using a predetermined overhead rate of 120% of directmaterials co is still in process at month-end. Prepare a schedule of cost of goods manufactured for the month. 4 was completed and Job 5 Direct materials used Direct labor used Job 4 $ 2,400 3,000 SHEN COMPANY Schedule of Cost of Goods Manufactured For Month Ended May 31 Direct materials used Direct labor Factory overhead applied Total manufacturing costs Add: Work in process inventory, beginning Job 5 $ 1,900 290 Total cost of work in process Less: Work in process inventory, ending Cost of goods manufactured $ $ 4,300 3,200 7,590 0 7,590 7,590
QUESTION 28 Rotel has 2 jobs completed at the end of the year. There is 1 factory-wide POHR used at Rotel based on direct material dollars. Job ABS1 has reported: $3,000 direct labor 54 direct labor hours $4500 direct materials $3,150 applied overhead Job #4C2 has reported: $6,100 in direct labor 108 direct labor hours $6,000 direct materials What is the amount of overhead applied to Job #4C2? $6,300 $1,260 $4,200 $6,500 QUESTION 29 During October, Dorinirl Corporation incurred $25,000 of direct material costs and $5,000 of indirect materials costs. The journal entry to record these materials would include a: O credit to Manufacturing Overhead $25,000 O credit to Work in Process of $25,000 O debit to Work in Process of $25,000 O debit to Manufacturing Overhead $25,000
Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Activity Rate Materials handling $ 54 per materials requisition Quality inspection $ 44 per inspection Utilities $ 5 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates. Activity Cost Driver Activity Usage Job A Job B Materials requisitions 5 3 Inspections 8 4 Machine hours 320 220
Exercise 15-17 (Algo) Overhead rate; costs assigned to jobs LO P3 Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $826,000 of overhead costs and $590,000 of direct labor cost for the period. During March, Shire began and completed Job 56. 1. What is the predetermined overhead rate for this period? 2. Use the Information on the following job cost sheet to determine the total cost of Job 56. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the information on the following job cost sheet to determine the total cost of Job 56. Note: Round your answers to the nearest dollar amount. Customer's Name: Keiser Company Job Description: 3 customized systems Direct Materials Date March 08 March 11 March 18 Requisition Number M-129 M-142 M-107 Cost JOB COST SHEET Direct Labor Time-Ticket Number S 4.000 T-300 6,600 T-432 3.300 T-456 Total Cost
-rk 8 Worksheet Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summårizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: • 6,000 units for Job 1 (@ $10/unit 5,500 units for Job 2 @ $15/unit 12,300 units for Job 3 @ $5/unit Requisitioned materials for production: 5,000 units for Job 1 @ $10/unit 4,000 units for Job 2 @ $15/unit 10,000 unit for Job 3 @ $5/unit Dir • 2,000 hours of direct labor on Job 1 at $15 per hour • 10,000 hours of direct labor on Job 2 at $14 per hour • 8,000 hours of direct labor on Job 3 at $20 per hour labor costs: • Total factory overhead costs for the month: • $70,000 of indirect materials • S115,000 of indirect labor • $97,000 of utilities costs • $18,000 of…
20 EXERCISES Soved Prepare jourmal entries to record the following production activities for Hotwax. 1. Incurred $145,000 of direct labor in its Mixing department and $70,000 of direct labor in its Shapi Wages Payable). 2 Incured indirect labor of $11,500 (credit Factory Wages Payable). 3. Total factory payroll of $226,500 was paid in cash. View transaction list Journal entry worksheet 1 Record direct labor used, but not yet paid. Note: Enter debits before credits. Transaction General Journal Debit Credit Work in process inventory-Shaping 70,000 Work in process inventory-Mixing < Prev 6 of 8 Next search 0 門

Question 17?
Question 11 Blue Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.40 $2.20 Raw materials units used 11,000 10,100 Direct labor payroll $177,600 $173,280 Direct labor hours worked 14,800 15,200 Manufacturing overhead incurred $235,636 Manufacturing overhead applied $238,336 Machine hours expected to be used at normal capacity 41,500 Budgeted fixed overhead for June $70,550 Variable overhead rate per machine hour $3.20 Fixed overhead rate per machine hour $1.70 Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $467,000. Selling and administrative expenses were $36,500. Assume that the amount of raw materials purchased equaled the amount used.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS