insurance cost should be allocated to the products
Q: The labor bonus for the production in June is: The total net savings to the company for the month…
A: Bonus is the reward given to employees for their good performance. It can be given in term of cash…
Q: SPL Enterprises assigns overhead based on number of machine hours. For the upcoming year, they plan…
A: Overhead means the amount spend in manufacturing the goods in factory indirectly like foreman…
Q: Benson Manufacturing Company produced 3,000 units of inventory in January Year 2. It expects to…
A: Production cost or manufacturing cost is the total cost incurred for producing a product. It is the…
Q: Assuming that Arrow desires to sell its chairs for cost plus 40 percent of cost, what price should…
A: Per unit Rent Allocation = Annual year Rental Fee/Annual estimated units Per month Rent Allocation…
Q: On January 1, Revis Consulting entered into a contract to complete a cost reduction program for…
A: Answer:- Journal entry meaning:- The act of maintaining or creating records of any transactions,…
Q: Munoz Manufacturing Company expects to make 30,100 chairs during the Year 1 accounting period. The…
A: A product's selling price is the price at which it is provided to clients or purchasers. sometimes…
Q: Factory Overhead (a) Determine the total factory overhead amount applied. Total factory overhead…
A: Overhead is the total indirect costs of materials, labour and other expenses which needs to be…
Q: nit of product sold. During March, the rep sold 140 units. Required Calculate the total monthly…
A: Variable Cost :— It is the cost that changes with change in units. It is constant in per unit for…
Q: Production workers for Zachary Manufacturing Company provided 330 hours of labor in January and 570…
A: Predetermined Overhead Rate:— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Walter company uses a predetermined overhead rate based on direct labor hours to apply manufacturing…
A: Predetermined overhead rate = Manufacturing Overheads / Direct labor hours Direct labor hours…
Q: On January 1, Revis Consulting entered into a contract to complete a cost reduction program for…
A: Answer:- Journal entry meaning:- The act of maintaining or creating records of any transactions,…
Q: Tech Solutions computes its predetermined overhead rate annually based on direct labor-hours. At the…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means an indirect cost rate.Predetermined overhead…
Q: Production workers for Thornton Manufacturing Company provided 5,200 hours of labor in January and…
A: Insurance expense per hour = Total premium paid / Total labor hours = $101850/48500 hours = $2.10…
Q: A company budgets overhead cost of $8,476,000 for the next year. The company uses machine hours as…
A: The objective of the question is to calculate the company's plantwide overhead rate. The plantwide…
Q: Required: 1. Determine the company's cost of technical support per customer service call. 2. During…
A: Introduction:- ABC costing means Activity based costing. It is used to allocation of manufacturing…
Q: Jiminez Company paid its annual property tax of $12,400 on its manufacturing facility in January.…
A: Cost allocation is the method in which common costs are allocated to the product on the basis number…
Q: A manufacturing company estimates it will incur $240,000 of overhead costs in the next year. The…
A: Journal entry: It is prepared to record the financial and non financial transaction of the business…
Q: Please look the answers I have done and let me know if they are correct and help me with the final…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means an indirect cost rate.Predetermined overhead…
Q: Park Industries manufactures custom-designed playground equipment for sc of manufacturing overhead…
A: Predetermined OH Rate is the one that is calculated to apply the Mfg. OH incurred to the jobs or…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: As per the given information: Estimated direct-labor hours - 32,000 direct-labor hours Estimated…
Q: ry. Materials and labor costs for January were $17,900 and $25,900, respectively. Solomon produced…
A: Answer : Overhead absorption rate =Annual rental fee / Budgeted production Overhead absorption rate…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: The pre-determined overhead rate is calculated as the total estimated overhead costs divided by the…
Q: Adams Air is a large airline company that pays a customer relations representative $16,425 per…
A: - Payment to customer relations representative: $16,425 per month - Expectation to process total…
Q: 1. Indicate the effects of each transaction on the accounting equation.
A: How balance sheet or accounting equation works.As per accounting equation, total assets are always…
Q: Perez Manufacturing Company produced 2,700 units of inventory in January, Year 2. It expects to…
A: Production cost is the total cost incurred for producing a product .It includes direct…
Q: Harris Fabrics computes Its plantwide predetermined overhead rate annually on the basis of direct…
A: Plantwide predetermined overhead rate = Estimated total manufacturing overheads / Estimated total…
Q: Munoz Manufacturing Company produced 1,600 units of inventory in January, Year 2. It expects to…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the…
A: Predetermined overhead rates are used to allocate indirect costs. Alternatively, activity-based…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: PREDETERMINED OVERHEAD RATE Predetermined rate means an indirect cost rate. predetermined overhead…
Q: Gibson Manufacturing Co. expects to make 30,800 chairs during the year 1 accounting period. The…
A: Expected total number of chairs to be produced during the accounting period = 30800 chairs The…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: The objective of the question is to calculate the plantwide predetermined overhead rate for Harris…
Q: Pocono Cement Forms expects $700,000 in overhead during the next year. It does not know whether it…
A: In the above case, Pocono Cement Forms is expecting $700,000 in overheads during the next year.…
Q: Baird Manufacturing Co. expects to make 30,500 chairs during the year 1 accounting period. The…
A: Overhead recovery rate can be computed by dividing the Total overhead cost by the Total number of…
Q: Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct…
A: Manufacturing expenses are simply an expenditure study that estimates how each department in your…
Q: ch Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours.…
A: The predetermined overhead rate is calculated as follows: Predetermined overhead rate = Estimated…
Q: Stuart Corporation expects to incur indirect overhead costs of $102,000 per month and direct…
A: The predetermined overhead rate is the rate determined for the purpose of computing the estimated…
Q: Adams Corporation estimated its overhead costs would be $23,000 per month except for January when it…
A: A budget is an estimation or a financial plan for a defined period, usually one year. It may also…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: Predetermined overhead rate is the estimated overhead rate which is calculated by dividing the…
Q: Munoz Manufacturing Company makes tents that it sells directly to camping enthusiasts through a…
A: Direct cost are those cost which are directly charge to cost of production such as material cost ,…
Q: Production workers for Benson Manufacturing Company provided 380 hours of labor in January and 660…
A: Allocation of overhead means charging the indirect expense of manufacturing a product or providing…
Q: Tech Solutions computes its predetermined overhead rate annually based on direct labor - hours. At…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead to cost…
Q: Campbell Manufacturing Company produced 1,400 units of Inventory In January Year 2. It expects to…
A: The predetermined overhead rate is the rate used to allocate the manufacturing overhead to various…
Production workers for Zachary Manufacturing Company provided 4,300 hours of labor in January and 3,400 hours in February. The company, whose operation is labor intensive, expects to use 48,300 hours of labor during the year. Zachary paid a $111,090 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months.
Required
Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? (Do not round intermediate calculations.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: June $201,000 Manufacturing costs" Insurance expense** April May $157,200 $197,600 970 970 2,200 420 2,200 420 970 Depreciation expense Property tax expense*** "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 $970 a month; however, the insurance is paid four times yearly in the first month of the quarter, (.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 May are O&$187.500 b. $39,300 Oe5148,200 Od $226,800 2,200 420Ware Manufacturing Company produced 2,000 units of inventory in January, Year 2. It expects to produce an additional 14,000 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 16,000 units. Direct materials and direct labor costs are $64 and $52 per unit, respectively. Ware expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies $ 20,000 Supervisor salary 160,000 Depreciation on equipment 75,000 Utilities 20,000 Rental fee on manufacturing facilities 45,000 Required Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. Determine the cost of the 2,000 units of product made in January.Sheridan Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at of plant capacity and producing 119, 400 units. Fixed costs for the period were cost of goods sold, and selling and administrative expenses. In July, normally a slack manufacturing month, Sheridan receives a special order for 10, 000 basketballs at each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses per unit because of shipping costs but would not increase fixed costs and expenses. (a) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e g. 15.25. Enter negative amounts using either a negative sign preceding the number e. g. or parentheses e. g. (45).) (b) Should Sheridan Inc, accept the special order?
- Rundle Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Direct labor Home 1: $63,000 Home 2: $108,000, Home 3: $181,000 Direct materials Home 1: 98,000 Home 2: 143,000 Home 3: 186,000 Assume Rundle needs to allocate two major overhead costs ($ 52,800 of employee fringe benefits and $12,,810 of indirect materials cost) among the three Jobs. required; Choose an appropriate cost driver for each of the overhead costs and determine the cost of each house ( round " allocation rate to 2 decimal places.)A manufacturing company estimates it will incur $240,000 of overhead costs in the next year. The company applies overhead using machine hours and estimates it will use 1,600 machine hours in the next year. During the month of June, the company used 80 machine hours on Job 1 and 70 machine hours on Job 2. 1. Compute the predetermined overhead rate to be used to apply overhead during the year. 2. Determine how much overhead should be applied to Job 1 and to Job 2 for June. 3. Prepare the journal entry to record overhead applied for June.Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 42,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $571,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $773,298 and its actual total direct labor was 42,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
- Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 31,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $517,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $670,239 and its actual total direct labor was 31,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. Predetermined overhead rate $ 22.13 X per DLHUnited Airlines estimates that the factory overhead for the following year will be $1,400,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300 hours. The actual factory overhead for the year was $1,475,000. (a) Determine the total factory overhead amount applied. (b) Calculate the over- or underapplied amount for the year. (c) Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.Enjoy It Industries manufactures custom-designed playground equipment for schools and city parks. Enjoy It expected to incur $750,600 of manufacturing overhead cost, 41,700 of direct labor hours, and $1,000,800 of direct labor cost during the year (the cost of direct labor required $14,200 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 27% over manufacturing cost. $24 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During July, Enjoy It completed Job 309. The job used 165 direct labor hours and Read the equirement Requirement 1. Calculate the manufacturing cost of Job 309. First identify the formula, then calculate the predetermined overhead rate. = Predetermined overhead rate per hour
- During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $24,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 12 percent interest due in six months. On January 3, it paid $1,400 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,600. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,300. E8-4 Part 1 Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".) Date January 1 No effect January 2 Equipment Cash January…Shadee Corporation expects to sell 630 sun shades in May and 400 in June. Each shade sells for $138. Shadee’s beginning and ending finished goods inventories for May are 65 and 50 shades, respectively. Ending finished goods inventory for June will be 50 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee’s fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $11 per unit produced. Required: Prepare Shadee’s direct labor budget for May and June. Prepare Shadee’s manufacturing overhead budget for May and June.Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 38,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $529,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $751,561 and its actual total direct labor was 38,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. Note: Round your answer to 2 decimal places.