Harnow Company manufactures drill presses. Based on past experience, Harnow has found that its total overhead cost can be represented by the following formula: Totaloverhead cost = $35,500+ $1.25x, where x = number of machine hours. Last year, Harnow incurred 120,000 machine hours.Required: Enter all amounts as positive numbers. Round to the nearest cent.A. What was the total overhead cost incurred by Harnow last year?$B. What was the total variable overhead cost incurred by Harnow last year?$C. What was the total overhead cost per machine hour last year? Round the answer to two decimal places.$D. What was the fixed overhead cost per machine hour last year? Round the answer to two decimal places.E. If Harnow incurs 140,000 machine hours next year, what will be the total overhead cost per machine hour? Round the answer to two decimal places.

Overhead costs are those that are not directly related to the production of goods or services, but…

Answered: Harnow Company manufactures drill…

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

XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$95,000+ $9×DLH; R-square Y=190,000+2Q; R-square-D0.55]. How much of the variations on the overhead costs is explained 0.90]; [Y= $120,000 $5xMhr; R-square = 0.10]; by the machine hours (Mhr)? Select one: O a. 90% Ob. None of the answers given Oc.45% O6.55% Oe. 10% Next page page
The following information pertains to the most recent quarter at Precious Production Limited. Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expenses Sales Utilities, factory Supplies, factory Selling expenses Indirect labour Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $ 388,500 47,600 77,500 215,500 21,900 253,300 127,600 295,200 2,256,000 117,500 4,190 337,100 273,300 28,950 123,800 42,850 171,400
Please help. I'm getting this wrong every time I try to calculate it. Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year--Job Bravo. Estimated Data Assembly Fabrication Total Manufacturing overhead costs $ 1,920,000 $ 2,240,000 $ 4,160,000 Direct labor-hours 80,000 48,000 128,000 Machine-hours 32,000 160,000 192,000 Job Bravo Assembly Fabrication Total Direct labor-hours 17 9 26 Machine-hours 9 12 21 Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation…
At the start of the year, Vencor Company estimated manufacturing overhead to be $2,000,000. Eighty percent of the overhead is fixed and relates to depreciation of equipment. The remaining 20 percent is variable. The company estimated machine hours to be 100,000 and thus used a predetermined overhead rate of $20 per machine hour. During the year, the company devised a new way to sequence movements of material among the machines, which resulted in a savings of 30,000 machine hours. Estimate the amount of manufacturing overhead that the company would save related to the reduction in machine hours. Why is the savings less than $20 per machine hour?
The total prime cost of a product was OMR6,500. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR4,500. Assuming that direct labor hours were 600 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR18,500 O b. OMR11,000 O c. OMR43,500 O d. OMR16,500 O e. OMR39,000
XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr). and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9×DLH; R-square 0.90]; [Y= $120,000 + $5xMhr; R-square 0.10]: [Y=D190,000+2Q; R-square%3D0.55]. How much of the variations on the overhead costs is explained by the direct labor hours (DLH)? Select one: Oa 45% Ob. None of the answers given O c 10% O a. 5596 Ce. 90%,
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $520,475 + $1.49X, where X equals number of smokers. Last year, SmokeCity produced 19,100 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? $fill in the blank 2 3. What is the total fixed overhead cost incurred by SmokeCity last year? $fill in the blank 3 4. What is the total variable overhead cost incurred by SmokeCity last year? $fill in the blank 4 For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? $fill in the blank 5 per unit 6. What is the fixed overhead cost…
want the answer of this question
XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9×DLH; R-square = 0.85); [Y= $120,000 + $5xMhr; R-square = 0.15]; [Y=190,000+2Q; R-square=0.45]. How much of the variations on the overhead costs is explained by the direct labor hours (DLH)? Select one: O a. 55% O b. None of the answers given O c. 15% O d. 85% O e. 45%
Overhead is calculated by Amanzi Company based on Direct Labor hours. Amanzi forecasts Overhead to be R700 000, Machine hours to be R200 000, and Direct labour hours to be R35000 at the start of the year. Amanzi has 5000 direct labour hours and 10,000 machine hours each year. What is the rate of predetermined overhead? a. R15.00 per hour per machine b. R14.00 per hour of direct labour c. R20.00 per hour of direct work d. R18.00 per hour per machine g. None of them are valid options.
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($378,000 ÷ 900,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Direct Labor Rate Variance Direct Labor Efficiency Variance IF TI 1,000,000 11,800,000 $ 8,260,000 $ Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). F 245,000 2,891,000 $ 318,500 $ 355,000 Standard Quantity 12 square…
The total prime cost of a product was OMR3,900. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR2,500. Assuming that direct labor hours were 400 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR25,900 O b. OMR6,400 O c. OMR25,000 O d. OMR23,400 O e. OMR10,900

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS