John Corporation bases its overhead rate on direct labour hours. The expected direct labour hours at the beginning of the year were 21,800 hours, and the total estimated manufacturing overhead was $497,040. Actual direct labour hours for the year were 21,500 hours at the end of the year, and actual manufacturing overhead was $492,040. At the conclusion of the year, the following expenses were incurred: A. $1,840 underapplied B. $6,840 overapplied C. $6,840 underapplied D. $1,840 overapplied

John Corporation bases its overhead rate on direct labour hours. The expected direct labour hours at the beginning of the year were 21,800 hours, and the total estimated manufacturing overhead was $497,040. Actual direct labour hours for the year were 21,500 hours at the end of the year, and actual manufacturing overhead was $492,040. At the conclusion of the year, the following expenses were incurred: A. $1,840 underapplied B. $6,840 overapplied C. $6,840 underapplied D. $1,840 overapplied

Name: John Corporation bases its overhead rate on direct labour hours. The
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: John Corporation bases its overhead rate on direct labour hours. The expected direct labour hours at the beginning ofthe year were 21,800 hours, and the total estimated manufacturing overhead was $497,040. Actual direct labour hoursfor the year were

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Before the year began, Brookville Manufacturing estimated that manufacturing overhead for the year would be $176,400 and that 13,300 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost Actual direct labor hours $184,400 14,500 The amount of manufacturing overhead allocated for the year based on direct labor hours would have been ? (Round intermediary calculations to the nearest cent and final answer to the nearest dollar.) A. $176,400. B. $192,270. C. $184,400. OD. $169,139.
Gilchrist Corporation bases its predetermined overhead rate on the estimated machine - hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine - hours for the upcoming year at 22, 900 machine - hours. The estimated variable manufacturing overhead was $6.67 per machine - hour and the estimated total fixed manufacturing overhead was $ 665,932. The predetermined overhead rate for the recently completed year was closest to:
XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During the year it incurred P345,000 dollars of actual overhead, but it planned to incur P360,000 of overhead. The company applied P363,000 of overhead during the year. How many actual direct labor hours did the company incur?
Ammons Corporation allocates manufacturing overhead using a predetermined manufacturing overhead rate of $1.50 per direct labor hour (DLH), and had actual manufacturing overhead costs for the most recent year of $29,500. Actual direct labor cost was $19 per hour and estimated direct labor cost was $17 per direct labor hour. At the end of the year, Ammons Corporation found it had over-allocated manufacturing overhead by $1,250. How many direct labor hours (DLH) were worked in total during the year? Select one: a. 18,833 DLH b. 20,500 DLH c. 1,552 DLH d. 1,735 DLH e. 19,667 DLH
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $351,232 and direct labor hours would be 43,904. Actual factory overhead costs incurred were $391,711, and actual direct labor hours were 51,004. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? If the contribution margin ratio for France Company is 46%, sales were $452,000, and fixed costs were $100,000, what was the income from operations? Department M had 2,100 units 57% completed in process at the beginning of June, 11,600 units completed during June, and 1,700 units 25% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories?
A company bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 75,000 labor-hours. The estimated variable manufacturing overhead was $10.70 per labor-hour and the estimated total fixed manufacturing overhead was $1,237,500. The actual labor-hours for the year turned out to be 78,100 labor-hours. Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to2 decimal places.) Predetermined overhead rate per labor-hour
silver company uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,500 hours. At the end of the year, actual direct labor-hours for the year were 16,000 hours, the actual manufacturing overhead for the year was $233,000, and manufacturing overhead for the year was underapplied by $15,400. The estimated manufacturing overhead at the beginning of the year used to calculate the predetermined overhead rate must have been:
At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $520,000, and direct materials costs, $200,000.At year-end, the company reports that actual overhead costs for the year are $528,700 and actual direct materials costs for the year are $200,000. 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead…
At Allen Company, manufacturing overhead is applied based on direct labor hours. Overhead was estimated to be $540,000 and direct labor hours were estimated to be 360,000. Actual direct labor hours and actual direct labor costs for the year amounted to 400,000 hours and $700,000. In addition, Allen Company incurred the following actual costs during the year: Administrative expenses, $100,000 Depreciation expense on fixed assets, $500,000 (80% of the depreciation expense was related to manufacturing activities) Indirect material costs, $25,000 Indirect labor costs, $45,000 Utility expense on the manufacturing facility, $125,000 Insurance expense on the manufacturing facility, $35,000 Marketing expenses, $75,000 Sales & promotion expenses, $25,000 Allen Company had the following inventory balances at the beginning and end of the year: January 1 December 31 Finished goods $450,000 $675,000 Work in process 600,000…
Winston Company estimates that the factory overhead for the following year will be $653,400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 36,300 hours. The total machine hours for the year were 55,000 hours. The actual factory overhead for the year was $984,000. Required: (a) Determine the total factory overhead amount applied. (b) Calculate the overapplied or underapplied amount for the year. Enter the amount as positive values. (c) Prepare the journal entry to close Factory Overhead into Cost of Goods Sold. Refer to the Chart of Accounts for exact wording of account titles.
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $329,800 and direct labor hours would be 49,100. Actual manufacturing overhead costs incurred were $316,500, and actual direct labor hours were 50,200. The journal entry to apply the factory overhead costs for the year would include a
Manufacturing overhead was estimated to be OMR 415,000 for the year along with estimated 20,000 direct labor hours. Actual manufacturing overhead was OMR 400,000, and actual labor hours were 21,000. The amount credited to the Manufacturing Overhead account would be: O a. OMR 420,000. O b. OMR 400,000. O c. OMR415,000. O d. OMR 435,750. e. None of the given answer is correct