Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $262,000 and direct labor hours to be 20,000. Actual overhead for the year was $290,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Applied Manufacturing Overhead 89 SEP 17 < Required 1 < Prev 1 of 8 tv ‒‒‒ Required 2 > Next > A O

Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $262,000 and direct labor hours to be 20,000. Actual overhead for the year was $290,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Applied Manufacturing Overhead 89 SEP 17 < Required 1 < Prev 1 of 8 tv ‒‒‒ Required 2 > Next > A O

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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 $262,000 and direct labor hours to be 20,000. Actual overhead for the yearwas $290,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

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

Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates
manufacturing overhead cost for the year to be $262,000 and direct labor hours to be 20,000. Actual overhead for the year
was $290,000.
Required:
1. Compute the predetermined overhead rate.
2. If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job?
Applied Manufacturing Overhead
89
SEP
17
<
Required 1
< Pre
1 of 8
tv
‒‒‒
‒‒‒
Required 2
>
Next >
A
O

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Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $225,000 and total machine hours of 45,000. During the year actual manufacturing overhead incurred was $258,750 and 47,600 machine hours were used. i. Calculate the predetermined overhead rate. ii. Calculate how much manufacturing overhead will be applied to production. ii. Is overhead over- or underapplied? By how much? iv. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased? Edit Format Table 12pt v Paragraph v BIUA ev T?v 1. $225,000/ 45000 = $5 Per Machine Hour 2.47600 x $5 = $238,000 I. 20 words 3. 4.
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