Gomez company calculates its predetermined overhead on the basis of direct-labor hours. The predetermined overhead rate is $22.50. For the purpose of calculating predetermined overhead rate, total manufacturing overheads were estimated to be $326,250 and estimated activity level was 14,500 hours. The company incurred actual overheads of $356,000 for 11,600 hours. Using the given information, determine the manufacturing overheads applied to the jobs during the period. a. $289,460 b. $261,000 c. $284,800 d. $356,000

Gomez company calculates its predetermined overhead on the basis of direct-labor hours. The predetermined overhead rate is $22.50. For the purpose of calculating predetermined overhead rate, total manufacturing overheads were estimated to be $326,250 and estimated activity level was 14,500 hours. The company incurred actual overheads of $356,000 for 11,600 hours. Using the given information, determine the manufacturing overheads applied to the jobs during the period. a. $289,460 b. $261,000 c. $284,800 d. $356,000

Name: Gomez company calculates its predetermined overhead on the basis of d
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Gomez company calculates its predetermined overhead on the basis of direct-labor hours. Thepredetermined overhead rate is $22.50. For the purpose of calculating predetermined overheadrate, total manufacturing overheads were estimated to be $326,250

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

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $182,400. Estimated direct labor cost was $446,500 for 19,000 hours. Actual costs for the most recent month are summarized here: Total Item Description Direct labor (1,900 hours) Cost $44,651 Indirect costs Indirect labor 2,460 3,440 3,370 4,750 Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries 5,730 1,150 1,890 4,200 5,370 Selling expenses
Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows: Actual manufacturing overhead cost $500,000 Estimated manufacturing overhead cost $550,000 Estimated direct labor cost $175,800 Estimated direct labor hours 50,500 Actual direct labor hours 60,700 Estimated machine hours 40,600 Actual machine hours 35,800 By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.)
Newhard Company assigns overhead cost to jobs on the basis of 118% of direct labor cost. The job cost sheet for Job 313 includes $20,074 in direct materials cost and $10,700 in direct labor cost. A total of 1,550 units were produced in Job 313. Required: a. What is the total manufacturing cost assigned to Job 313? b. What is the unit product cost for Job 313? a. Total manufacturing cost b. Unit product cost
Martin Manufacturing assigns overhead to jobs based on machine hours. At the beginning of the current year, estimated overhead costs were $200,000 and estimated machine hours were 40,000. During the year, 140 machine hours were used on Job 88. By the end of the year, actual overhead costs were calculated to be $202,500 and actual machine hours were 45,000.How much overhead was applied to Job 88 during the year?
Osborn Manufacturing uses a predetermined overhead rate of $19.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period. Can you please help me with the following: Determine the amount of underapplied or overapplied manufacturing overhead for the period, then assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company’s gross margin? By how much?
Luthan Company uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $266,000 and 12,400 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $349,900 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $303,900, and actual direct labor hours were 52,500. The journal entry to apply factory overhead costs for the year would include a A. Credit to factory overhead for 349,900 B. Debit to factory overhead for 390,600 C. Credit to factory overhead for $390,600 D. Debit to factory overhead for $303,900
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181,390. Estimated direct labor cost was $460,020 for 18,700 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,870 hours) $ 46,003 Indirect costs Indirect labor 2,450 Indirect materials 3,330 Factory rent 3,290 Factory supervision 4,720 Factory depreciation 5,680 Factory janitorial work 1,130 Factory insurance 1,880 General and administrative salaries 4,110 Selling expenses 5,440 Required:1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead. 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead.
ABC Inc. uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. The predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead cost for an estimated 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $270,000 and 11,800 direct labor-hours. Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Bret's RV Manufacturing uses job order costing to account for it's manufacturing costs. The company estimates total manufacturing overhead costs for the coming year to be $282,783. The total direct materials costs are estimated to be $784,555. The total direct labor hours are estimated to be 67,670 hours with direct labor costs estimated at $541,365. What is the Predetermined Overhead rate if the company applies overhead based on direct labor hours? 52.24% 36.04% O417.89% 23.93% O4,18%
The LLO-24784 company uses a job-order costing system with direct labor hours as its allocation base. The company estimates its manufacturing overhead cost for the year to be $974,700. During the year, actual direct labor-hours were 36,360 hours, the actual manufacturing overhead cost was $930,000, and manufacturing overhead was overapplied by $51,720. How much was the LLO-24784 company's estimated direct labor-hours used in the calculation of its predetermined overhead rate? (Round your intermediate calculations to 2 decimal places.) Multiple Choice 32,529 direct labor-hours 36,360 direct labor-hours 36,100 direct labor-hours 34,444 direct labor-hours
Luthan Company uses a plantwide predetermined overhead rate of $23.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $285,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $269,000 and 11,200 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.