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:perhourFactory 1Factory 2Estimated factory overhead cost for fiscalyear beginning March 1Estimated direct labor hours for yearEstimated machine hours for year$12,900,000 $10,200,000250,000600,000Actual 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-edojtory overhead.

Answered: EX 19-8 Factory overhead rates,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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…
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Question 3 Kerisi Sdn Bhd manufactures tents and sleeping bags in two separate production departments. The manufacturing processes involve two departments: Cutting and Sewing Departments. The company uses predetermined overhead to calculate manufacturing overhead. The Cutting Department is machine oriented while the Sewing Department is labour oriented. The following is the information for the year ended 31 December 2021. Cutting Department Sewing Department Estimated machine hours 105,000 29,000 Estimated direct labour hours 90,000 27,000 Estimated manufacturing overhead RM 651,000 RM 540,000 Actual manufacturing overhead RM 600,000 RM 560,000 Actual machine hours 100,000 27,000 Actual direct labour hour 96,300 26,600 Required: (a)Calculate the predetermined overhead rate for each department. . (b)Calculate over/under applied manufacturing overhead for each department.
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
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Exercise 11-6A (Algo) Recording overhead costs in T-accounts LO 11-2 Rundle Company and Rooney Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Rundle Actual manufacturing overhead Aatual direet labor hours Underapplied overhead Overapplied overhead Сoпpany $119,150 21,000 Rooney Company $262,250 25,000 11,000 $ 21,500 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) Per Direct Labor Hour Rundle Compamy Rooney Company Predetermined overhead rate Required A Required B>
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