Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it was estimated that 40,000 direct labor hours would be required for the period's estimated level of production. The company also estimated $507,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2 per direct labor hour. Harris's actual manufacturing overhead cost for the year was $663,188 and its actual total direct labor was 40,500 hours. Compute the company's plant-wide predetermined overhead rate for the year. The following are all changes in the account balances of Chili Lime Ltd. during the current year, except for Retained Earnings: Increase/ (Decrease) Increase/ (Decrease) Cash $76,000 Accounts payable ($ 64,000) Accounts receivable (net) Unearned 59,000 18,000 revenue Bonds Inventory 1,40,000 69,000 payable Investments in FV-NI securities Common (23,000) 1,05,000 shares Contributed 63,000 surplus Calculate the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $16,000, which was paid in the current year.

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it was estimated that 40,000 direct labor hours would be required for the period's estimated level of production. The company also estimated $507,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2 per direct labor hour. Harris's actual manufacturing overhead cost for the year was $663,188 and its actual total direct labor was 40,500 hours. Compute the company's plant-wide predetermined overhead rate for the year. The following are all changes in the account balances of Chili Lime Ltd. during the current year, except for Retained Earnings: Increase/ (Decrease) Increase/ (Decrease) Cash $76,000 Accounts payable ($ 64,000) Accounts receivable (net) Unearned 59,000 18,000 revenue Bonds Inventory 1,40,000 69,000 payable Investments in FV-NI securities Common (23,000) 1,05,000 shares Contributed 63,000 surplus Calculate the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $16,000, which was paid in the current year.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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