In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead cost $260,000 and direct materials cost $200,000. At year-end 2017 the company's records show that actual overhead costs for the year are $714, 200. Determine the predetermined overhead rate for 2017

In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead cost $260,000 and direct materials cost $200,000. At year-end 2017 the company's records show that actual overhead costs for the year are $714, 200. Determine the predetermined overhead rate for 2017

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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In December 2014, Custom Mfg. established its predetermined overhead rate for jobs produced during year 2015 by using the following cost predictions: overhead costs, $400,000, and direct labor costs, $200,000. At year-end 2015, the company’s records show that actual overhead costs for the year are $1,049,200. Actual direct labor cost had been assigned to jobs as follows. Jobs completed and sold $ 400,000 Jobs in finished goods inventory 74,000 Jobs in work in process inventory 46,000 Total actual direct labor cost $ 520,000 4. Required information 1. Determine the predetermined overhead rate for year 2015.
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Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costs of $907,200, direct labor costs of $756,000, and direct labor hours of 21,600 for the year. (Round answer to the nearest whole percent, e.g. 25%.) Predetermined overhead rate
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[The following information applies to the questions displayed below.] In December 2012, Infovision established its predetermined overhead rate for movies produced during year 2013 by using the following cost predictions: overhead costs, $1,800,000, and direct labor costs, $500,000. At year end 2013, the company's records show that actual overhead costs for the year are $1,608,800. Actual direct labor cost had been assigned to jobs as follows. Movies completed and 400,000 $4 released Movies still in production 50,000 Total actual direct labor $450,000 cost Exercise 15-14 Part 2&3 2&3.Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied (and the amount) during the year. Factory Overhead Applied overhead Actual overhead Overapplied overhead Applied overhead
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