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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2. Hayday Enterprises applies manufacturing overhead on the basis of machine-hours. At the beginning of 2019, the cost accountant estimated the following cost information for the year: Total DM Costs $440,000 Total DL Costs $890,000 Total MOH Costs $754,000 Total Machine Hours 2,000 Total DL Hours 90,000 At the end of 2019, Hayday Enterprises' cost accountant noted that the company used 2,500 machine hours and actual MOH was $912,000. Was manufacturing overhead under-applied or over-applied and by how much? Provide over-application as a positive number, and under-application as a negative.
Tristion Inc. has two production departments, and estimated the following information for the 2022 fiscal year Assembly Dept. Testing Dept. Overhead $1,496,250 $365,625 Direct labour hours 356,250 81,250 Machine hours 80,000 162,500 Currently, the company uses departmental rates to assign overhead costs. Overhead costs are assigned on the basis of direct labour hours for the Assembly Department and machine hours for the Testing Department. For September, the company reported the following actual data: Assembly Dept. Testing Dept. Overhead $107,560 $34,340 Direct labour hours 28,600 6,770 Machine hours 5,700 13,520 Required (A) What are the predetermined overhead rates for each department? (B) Assume that Job R777 used 4 direct labour hours in the Assembly Department and 3 machine hours in the Testing Department. Compute the overhead assigned to Job R777. (C) How much overhead was applied in the month of September? (D)…
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Pocono Cement Forms expects $700,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 50,000 or its expected machine hours of 25,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,560 in direct material cost, 102 direct labor hours, and 85 machine hours. Wages are paid at $15 per hour. Labor Hours Machine Hours Cost of the job $ $
Thornton Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Home 1 Home 2 Home 3 Direct labor $ 66,000 $ 100,000 $ 178,000 Direct materials 109,000 139,000 181,000 Assume Thornton needs to allocate two major overhead costs ($51,600 of employee fringe benefits and $30,030 of indirect materials costs) among the three jobs.RequiredChoose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.)
Compute the Manufacturing Overhead Applied to Jobs; Direct Materials Used=$300,000, Indirect Materials Used =$75,000, Direct Labor=$250,0000, Indirect Labor=$55,000, Factory Rent Costs=$175,000, The Manufacturing Overhead Application Rate is 133% of Direct Labor Costs. Show your Answer as a Number only with no Symbols, Commas, or Dollar Signs. 399,000
HOW MUCH IS THE TOTAL COST OF JOB 100?
XYZ Co. has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 340,000 Depreciation 120,000 Rent 140,000 Total $ 600,000 The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Total Activity Assembly 30,000 labor-hours Order processing 510 orders Other Not applicable The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization- sustaining costs. The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Assembly Processing Other Total Wages and salaries 35% 40% 25% 100% Depreciation 15% 45% 40% 100% Utilities 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to:
Wilmington Company has two manufacturing departments-Assembly and Fabrication. All of its manufacturing overhead costs are fixed costs. The first set of data 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 Manufacturing overhead costs Direct labor-hours Machine-hours Job Bravo Direct labor-hours Machine-hours Assembly 17 9 Assembly $ 1,920,000 80,000 32,000 Fabrication 9 12 Fabrication $ 2,240,000 48,000 160,000 Total 26 21 1. Plantwide manufacturing overhead applied to Job Bravo 2. Manufacturing overhead applied from Assembly to Job Bravo 2. Manufacturing overhead applied from Fabrication to Job Bravo 2. Total departmental manufacturing overhead applied to Job Bravo Required: 1. If Wilmington uses a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? Total $ 4,160,000 128,000 192,000 2.…
Compute for the total Factory overhead cost of Department H if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. * The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G V w 770,000 120,500 420,000 170,000 15,000 23,000 9,500 14,500 30,000 7,000 7,000 7,500 6,000 97,500 Rent 250,000 100,000 350,000 157,500 61,000 Repairs Fuel Indirect Labor 145,000 127,000 100,000 94,500 Indirect 56,500 60,000 Materials Heat and Light Depreciation Miscellaneous Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively. 7,500 202,500 94,000 60,000…
Accenture Chemicals has the following data relating to its factory in the year ended 31 December 2020: Direct material costs OMR 500 Direct labor cost OMR 250 The total indirect expenses for the factory are OMR 30,000. There were 5,000 labor hours worked and 25,000 machine hours consumed in the factory in the year 2020. Compute the overhead rate based on direct labor hour. None of these b. OMR 6.000 / hour COMR 1.000 / hour d. OMR 6.150 / hour