In 2019, a company reported sales revenue of Landon Manufacturing Companyproduced 2,000 units of inventory in March 2023. It expects to produce anadditional 18,000 units during the remaining nine months of the year, resultingin an estimated total production of 20,000 units for 2023. The direct materialsand direct labor costs per unit are $72 and $60, respectively. The companyexpects to incur the following manufacturing overhead costs for the 2023accounting period:⚫ Production supplies: $12,000•Supervisor salary: $200,000Depreciation on equipment: $80,000⚫ Utilities: $25,000•Rental fee on manufacturing facilities: $55,000a. Combine the individual overhead costs into a cost pool and calculate apredetermined overhead rate assuming the cost driver is the number of units.b. Determine the total cost of the 2,000 units produced in March.

Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is an estimated…

Answered: In 2019, a company reported sales…

FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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In December 2019, Solar Systems Inc. management establishes the 2020 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $920,000 of overhead costs and $600,000 of direct labor cost in year 2020. During March 2020, Solar Systems began and completed Job No. 20-78. What is the predetermined overhead rate for year 2020?
Swifty Corporation provide the information from its accounting records for 2019: Expected production 80000 labor hours, Actual production 76000 labor hours, Budgeted overhead 1500000, Actual overhead 1440000. How much is the overhead application rate if Swifty Corporation bases it on direct labor hours?
Vintage Manufacturing uses a perpetual inventory system and predetermined manufacturing overhead rate based on direct labor cost. At the beginning of 2023, they estimated total manufacturing overhead costs at $2,352,000, and they estimated total direct labor cost at $3,360,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The entity wishes to quote for job # 242. Job stats are as follows: Direct materials cost Direct labour rate $175,250 $480 per direct labour hour 500 hours Direct labour hours Special Design Cost Distribution quote from haulage company Units of product produced $9,750 $24,250 250 cartons a) Compute Vintage Manufacturing predetermined manufacturing overhead rate for 2023. b) How much manufacturing overhead was allocated to Job #242? c) Calculate the total cost & quotation price of Job #242, given that a margin of 20%…
During 2022, Carla Vista Company incurred the following direct labor costs: January $19,200 and February $28,800. Carla Vista uses a predetermined overhead rate of 120% of direct labor cost. Estimated-overhead for the 2 months, respectively, totaled $18,720 and $34,272. Actual overhead for the 2 months, respectively, totaled $24,000 and $32,160. Calculate overhead applied. January February $ Determine if overhead is over- or underapplied for each of the two months and the respective amounts. January $ February I
Michael Scott Paper Co. uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.At the beginning of 2020, the company expected to incur the following:Michael Scott Paper Co.Beginning of 2020 Manufacturing overhead costs $1,001,910 Direct labor costs $1,512,800 Number of Machine hours to be used 73,400 At the end of 2020, the company had actually incurred:Michael Scott Paper Co.End of 2020 Direct labor costs $1,219,700 Depreciation on manufacturing plant equipment $596,400 Property taxes on plant $39,600 Sales Salaries $28,400 Delivery drivers wages $25,600 Plant janitor's wages $17,100 Number of Machine hours actually used 65,700 (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the predetermined overhead allocation rate. Total estimated overhead cost ? Total estimated quantity of the overhead allocation base =…
SimPle Tech Corporation bases its predetermined overhead rate on the estimatedmachine-hours for the upcoming year.At the beginning of 2020, the Corporation estimated the machine-hours for the upcoming year at 10,000 machine-hours. The estimated variable manufacturing overhead was $6.82 per machine-hour and the estimated total fixed manufacturing overhead was $230,200. The predetermined overhead rate for 2020 is estimated at _____________.A. $29.84 per machine hourB. $23.15 per machine hourC. $23.02 per machine hourD. $6.82 per machine hour Give workings for your answer
Negros Co.'s factory overhead rate is pre-determined at the start of the fiscal period based on expected actual production capacity. Budgeted factory overhead is Ph175,000 for a normal capacity of 50,000 units and Ph225,000 for a maximum capacity of 75,000 units. At the beginning of 2020, the company forecasted a production of 60,000 units. For 2020, the factory overhead rate per unit would be * Ph 2.75 Ph 3.00 Ph 3.25 Ph 3.50
Assume you made the following two predictions for 2022 for one of your production facilities: Total manufacturing overhead for the year $15,000,000Total direct labor hours for the year 800,000 Actual results for July 2022 were as follows: Manufacturing overhead $1,238,500Direct labor hours 98,500 Calculate the predetermine overhead rate per direct labor hour for 2022.
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $159,200 $192,600 $206,100 Insurance expense** 1,130 1,130 1,130 Depreciation expense 1,880 1,880 1,880 Property tax expense*** 450 450 450 * Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month.**Insurance expense is $1,130 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October).***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are a.$140,995 b.$122,790 c.$119,400 d.$159,200
Kindly help me Accounting question
Strong Company applies overhead based on machine hours. At the beginning of 2018, the company estimated that manufacturing overhead would be OMR 120,000, and machine hours would total 15,000. By 2018 year-end, actual overhead totaled OMR 140,000, and actual machine hours were 20,000. On the basis of this information, the 2018 predetermined overhead rate was:
Baylor Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $198,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. What are the cash payments for manufacturing in the month of June?

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