Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimatesmanufacturing overhead cost for the year to be $276,000 and direct labor hours to be 20,000. Actual overhead and actual direct laborhours for the year were $325,000 and 24,600 hours, respectively.Required:1. Compute over- or underapplied overhead.20. Which accounts will be affected by the over- or underapplied manufacturing overhead?2b. Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?Complete this question by entering your answers in the tabs below.Req 1Req 2AReq 2BCompute over- or underapplied overhead.Manufacturing overheadReq 1Req 2AReq 28Which accounts will be affected by the over- or underapplied manufacturing overhead? (Select all that apply.)Cost of Goods SoldManufacturing OverheadFinished Goods InventorySelling and Administrative OverheadMarketing and Distribution OverheadReq 1Req 2AReq 2BWill the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?

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Description: Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimatesmanufacturing overhead cost for the year to be $276,000 and direct labor hours to be 20,000. Actual overhead and actual direct laborh

Manufacturing overhead is the overhead incurred on the production of the goods. It includes indirect…

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Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $276,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $325,000 and 24,600 hours, respectively. Required: 1. Compute over- or underapplied overhead. 20. Which accounts will be affected by the over- or underapplied manufacturing overhead? 2b. Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?

Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $276,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $325,000 and 24,600 hours, respectively. Required: 1. Compute over- or underapplied overhead. 20. Which accounts will be affected by the over- or underapplied manufacturing overhead? 2b. Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...

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Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
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If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has 100,000 machine hours, would there be an under applied or over applied overhead?
A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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