Jeniffer Fly Shop applies overhead at a rate of $5.50 per direct labor hour. At the end of the month, the company had accumulated 7,000 direct labor hours and 7,800 machine hours. The company incurred $37,500 in actual manufacturing overhead. Manufacturing overhead was: a. $3,000 overapplied.

Jeniffer Fly Shop applies overhead at a rate of $5.50 per direct labor hour. At the end of the month, the company had accumulated 7,000 direct labor hours and 7,800 machine hours. The company incurred $37,500 in actual manufacturing overhead. Manufacturing overhead was: a. $3,000 overapplied.

Name: Jeniffer Fly Shop applies overhead at a rate of $5.50 per direct labo
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Description: Jeniffer Fly Shop applies overhead at a rate of $5.50 per direct labor hour. Atthe end of the month, the company had accumulated 7,000 direct labor hoursand 7,800 machine hours. The company incurred $37,500 in actualmanufacturing overhead. Manufactu

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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York Company is a machine shop that estimated overhead will be $48,000, consisting of 4,000 hours of direct labor. The cost to make Job 0325 is $70 in aluminum and two hours of labor at $10 per hour. During the month, York incurs $40 in indirect material cost, $140 in administrative labor, $290 in utilities, and $240 in depreciation expense. A. What is the predetermined overhead rate if direct labor hours are consi ed the cost driver? $1 per direct labor hour B. What is the cost of Job 0325? C. What is the overhead incurred during the month?
Winston Company estimates that the factory overhead for the following year will be $833,900. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,900 hours. The total machine hours for the year were 54,000 hours. The actual factory overhead for the year was $1,697,000. Required: a. Determine the total factory overhead amount applied. b. Compute the overapplied or underapplied amount for the year. Enter the amount as a positive value. c. Prepare the journal entry to close Factory Overhead into Cost of Goods Sold. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Show Me How Applying factory overhead Keenan Company estimates that total factory overhead costs will be $322,000 for the year. Direct labor hours are estimated to be 23,000. a. For Keenan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. $ per direct labor hour b. During May, Keenan Company accumulated 720 hours of direct labor costs on Job 200 and 510 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. $ c. Prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate. If an amount box does not require an entry, leave it blank.
Osborn Manufacturing uses a predetermined overhead rate of $18.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $224,480 of total manufacturing overhead for an estimated activity level of 12,200 direct labor-hours. The company actually incurred $219,000 of manufacturing overhead and 11,700 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1. Manufacturing overhead by 2. The gross margin would by
Saddle Inc. applies overhead on the basis of direct labor costs. The company estimates annual overhead costs will be $760,000 and annual direct labor costs will be $950,000. During February, Saddle works on two jobs: A16 and B17. Summary data concerning these jobs are as follows:Manufacturing Costs Incurred: Purchased $54,000 of raw materials on account. Factory labor $76,000, plus $4,000 employer payroll taxes. Manufacturing overhead exclusive of indirect materials and indirect labor $59,800. Assignment of Costs: Direct Materials: Job A16: $27,000, Job B17: $21,000 $3,000 Indirect Materials: $3000 Direct Labor: Job A16: $52,000, Job B17: $26,000 $2,000 Indirect labor: $2000 The company completed Job A16 and sold it on account for $150,000. Job B17 was only…
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1. For KnightRider Company, the predetermined overhead rate is 150% of direct labor cost. During the month, KnightRider incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead incurred was $120,000. Required: Compute the amount of manufacturing overhead applied during the month. Determine the amount of under or over applied manufacturing overhead.
Shoes Wisely, Inc. allocates overhead using machine hours as the allocation base. The following information was estimated at the beginning of the year: Estimated Manufacturing Overhead $73,000 Estimated Machine Hours 19,000 Actual overhead totaled $72,000. During the year, the company produced 8,500 units of product using 14,000 machine hours and 60,000 direct labor hours. How much manufacturing overhead was allcoated to the product during the year? Round your answer to whole dollars.
The Ruqaiyah Company estimated Department A's overhead at P255,000 for the period based on an estimated volume of 100,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a balance of P265,500; actual direct labor hours were 105,000. What was the over- or under-applied overhead for the period? * A. P2,250 B. P(2,250) C. P15,000 D. P(15,000)