I have a cost accounting question. **Hammatt Inc. Operations Overview****Operational Data for the Year:**- **Budgeted operating overhead:** $1,245,600- **Actual operating overhead:** $1,231,500- **Budgeted net realizable value of recycled paper:** $27,600- **Actual net realizable value of recycled paper:** $29,100- **Budgeted billable hours:** 210,000- **Actual billable hours:** 212,700**Tasks:**a. **Predetermined Overhead Rate Calculation:** Assuming the number of billable hours as the allocation base, compute the predetermined overhead rate.b. **Journal Entry for Recycled Paper Sale:** Record the sale of the recycled paper in the journal. | Account | Debit | Credit | |---------|-------|--------| | | $0 | $0 | | | $0 | $0 | *To record sale of by-product*c. **Overhead Application Analysis:** Determine the company's underapplied or overapplied overhead for the year. **Note:** Do not use a negative sign with your answer. $______

Pre-determined overhead allocate rate: It the rate of allocating the expected overheads to the…

Hammatt Inc. provides a variety of services for commercial clients. Hammatt destroys any paper client records after seven years and the shredded paper is sold to a recycling company. The net realizable value of the recycled paper is treated as a reduction to operating overhead. The following data pertain to operations for the year: Budgeted operating overhead $1,245,600 Actual operating overhead $1,231,500 Budgeted net realizable value of recycled paper Actual net realizable value of recycled paper $27,600 $29,100 Budgeted billable hours 210,000 Actual billable hours 212,700 a. Assuming that number of billable hours is the allocation base, what was the company's predetermined overhead rate? $ 0 b. Record the journal entry for the sale of the recycled paper. Account Debit Credit 2$ 0 $ To record sale of by-product c. What was the company's underapplied or overapplied overhead for the year? Note: Do not use a negative sign with your answer. $ 0

Hammatt Inc. provides a variety of services for commercial clients. Hammatt destroys any paper client records after seven years and the shredded paper is sold to a recycling company. The net realizable value of the recycled paper is treated as a reduction to operating overhead. The following data pertain to operations for the year: Budgeted operating overhead $1,245,600 Actual operating overhead $1,231,500 Budgeted net realizable value of recycled paper Actual net realizable value of recycled paper $27,600 $29,100 Budgeted billable hours 210,000 Actual billable hours 212,700 a. Assuming that number of billable hours is the allocation base, what was the company's predetermined overhead rate? $ 0 b. Record the journal entry for the sale of the recycled paper. Account Debit Credit 2$ 0 $ To record sale of by-product c. What was the company's underapplied or overapplied overhead for the year? Note: Do not use a negative sign with your answer. $ 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

I have a cost accounting question.

**Hammatt Inc. Operations Overview**

**Operational Data for the Year:**

- **Budgeted operating overhead:** $1,245,600
- **Actual operating overhead:** $1,231,500
- **Budgeted net realizable value of recycled paper:** $27,600
- **Actual net realizable value of recycled paper:** $29,100
- **Budgeted billable hours:** 210,000
- **Actual billable hours:** 212,700

**Tasks:**

a. **Predetermined Overhead Rate Calculation:**

Assuming the number of billable hours as the allocation base, compute the predetermined overhead rate.

b. **Journal Entry for Recycled Paper Sale:**

Record the sale of the recycled paper in the journal.

| Account | Debit | Credit |
|---------|-------|--------|
| | $0 | $0 |
| | $0 | $0 |

*To record sale of by-product*

c. **Overhead Application Analysis:**

Determine the company's underapplied or overapplied overhead for the year.

**Note:** Do not use a negative sign with your answer.

$______

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