Ivanhoe Manufacturing is a small manufacturer that uses machine hours as its activity base for assigning overhead costs to jobs. The company estimated the following amounts for 2022 for the company and for Job 62: Company Job 62 Direct materials $64,800 $5,000 Direct labor $27,000 $3,400 Manufacturing overhead costs $82,620 Machine hours 97,200 1,500 During 2022, the actual machine hours totaled 102,600, and actual overhead costs were $76,400. Compute the predetermined overhead rate

Ivanhoe Manufacturing is a small manufacturer that uses machine hours as its activity base for assigning overhead costs to jobs. The company estimated the following amounts for 2022 for the company and for Job 62: Company Job 62 Direct materials $64,800 $5,000 Direct labor $27,000 $3,400 Manufacturing overhead costs $82,620 Machine hours 97,200 1,500 During 2022, the actual machine hours totaled 102,600, and actual overhead costs were $76,400. Compute the predetermined overhead rate

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Total Assembly $ 960,000 Fabrication $ 1,200,000 Manufacturing overhead costs Direct labor-hours Machine-hours $ 2,160,000 96,000 36,000 60,000 24,000 120,000 144,000 Job Bravo Fabrication Total Direct labor-hours Assembly 13 5 18 Machine-hours 8 13 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 base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to…
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