Required: Compute the over or under-applied factory overhead for the year 1. Assuming the plant-wide overhead rate is used2. Assuming the departmental overhead rates are used Harold Corp uses the job order costing system. Factory overhead is appliejobs on the basis of direct labor cost. The following estimates are made atProblem 3 Predetermined Factory OverheadapplieFabricating Machining Assembly300,0001,200,000beginning of the year:Total600,0001,050,000900,000270,0001,800,0002,520,000Direct LaborFactory Overhead280 The following are the cost required by each department.allowing are the cost required by each department.Fabricating9,0008,400Machining AssemblyDirect MaterialsDirect LaborFactory OverheadTotal13,80028,5006004,20018,6001,500the end of the year, the following are the actual cost data relating to all jobsprocessed during the year:Fabricating Machining570,000630,0001,080,000Assembly342,000786,000252,000TotalDirect MaterialsDirect Labor48,000324,0001,260,000(60,0001,740,0002,592,000Factory Overheadcompany uses plant-wide overhead rate to apply the factory overhead costto jobs.The

The overhead is applied to the production on the basis of predetermined overhead rate.

jobs on the basis of direct labor cost. The following estimates are made at Harold Corp uses the job order costing system. Factory overhead is applie Problem beginning of the year: Fabricating Machining Assembly 300,000 Total 900,000 600,000 1,050,000 1,800,000 2,520,000 Direct Labor 1,200,000 270,000 Factory Overhead 280

jobs on the basis of direct labor cost. The following estimates are made at Harold Corp uses the job order costing system. Factory overhead is applie Problem beginning of the year: Fabricating Machining Assembly 300,000 Total 900,000 600,000 1,050,000 1,800,000 2,520,000 Direct Labor 1,200,000 270,000 Factory Overhead 280

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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Equivalent Units of Production and Cost per Equivalent Unit—FIFO Method Required: Assume that the company uses the FIFO method in its process costing system. 1. Compute the first department’s equivalent units of production for materials, labor, and overhead for the month. 2. Compute the first department’s cost per equivalent unit for materials, labor, overhead, and in total for the month.
Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: $765,000 315,000 $1,080,000 Fabrication Department factory overhead Assembly Department factory overhead Total Direct labor hours were estimated as follows: Fabrication Department Assembly Department Total In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments…
Multiple predetermined overhead rates: calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. O a. O b. makes job-order costing less accurate accounting for costs. O c. none of the given answers is correct. O d. are based on actual total manufacturing overhead costs are calculated at the beginning of the accounting perioc before the actual amount of manufacturing overhead is known. O e.
There are standard amounts of factory overhead. Explain the procedures to determine standard amounts of factory overhead at different levels of production.
Asap Which of the following is not a factory overhead allocation method? a.activity-based costingb.factory costingc.single plantwide rated.multiple production department rates
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Determine the amount of underapplied or overapplied manufacturing overhead for the period.
What is the total factory overhead costs incurred by Regional Safety Supplies during the period?
The following is part of Production Overheads a. Office Salary b. Depreciation of Office AC c. Depreciation of Machine d. Salesman Salary
Manufacturing overhead applied is added to direct labor incurred and to what other item to equal total manufacturing costs for the period? OA) Goods available for sale B) Raw materials purchased OC) Work in Process inventory D) Direct materials used
for 11; 12; 13; and 15 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place. 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Note: Round intermediate calculations and your "Percentage" answers to 2 decimal places. 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place.