Franklin, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation Supplies Materials handling Property taxes Production setup Rent Maintenance Supervisory salaries $190,100 20,000 33,200 13,300 20,100 43,000 39,000 281,300 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 201,000 and for machines were 128,000. Required a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) b. 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.)

Franklin, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation Supplies Materials handling Property taxes Production setup Rent Maintenance Supervisory salaries $190,100 20,000 33,200 13,300 20,100 43,000 39,000 281,300 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 201,000 and for machines were 128,000. Required a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) b. 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.)

Name: Franklin, Inc. estimates manufacturing overhead costs for the Year 3
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Description: Franklin, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows.Equipment depreciation.SuppliesMaterials handlingProperty taxesProduction setupRentMaintenanceSupervisory salaries$190,100.20,00033,200a. Predetermined

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Franklin, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows.
Equipment depreciation.
Supplies
Materials handling
Property taxes
Production setup
Rent
Maintenance
Supervisory salaries
$190,100.
20,000
33,200
a. Predetermined overhead rate
b. Applied manufacturing overhead
13,300
20,100
43,000
39,000
281,300
The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 201,000 and for
machines were 128,000.
Required
a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)
b. 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.)
per machine hour

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