Johnson Manufacturing estimates total factory overhead of $600,000 and 30,000 machine hours for the year. If actual machine hours were 28,000 and actual factory overhead was $580,000, calculate the overapplied or underapplied overhead.

Johnson Manufacturing estimates total factory overhead of $600,000 and 30,000 machine hours for the year. If actual machine hours were 28,000 and actual factory overhead was $580,000, calculate the overapplied or underapplied overhead.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

See similar textbooks

Related questions

Q: Don't Use Ai

A: Explanation of Sales on Account:Sales on account represent the total revenue generated by a company…

Q: Apex Foods Ltd. had 2020 net loss of... Please answer the accounting question

A: Step 1: Define Profit MarginProfit margin measures the percentage of sales revenue that translates…

Q: Accounting Problem

A: Explanation of Economic Order Quantity (EOQ):Economic Order Quantity (EOQ) is the optimal order…

Q: Solid Company manufactures and sells specialty items. The following representative direct labor-…

A: Step 1: Understand the Cost Estimation EquationThe total production cost equation is based on the…

Q: The matching principle requires that: (a) Expenses are recorded when cash is paid (b) Assets and…

A: Option (a): Expenses are recorded when cash is paid.It describes cash accounting, not the matching…

Q: Smith manufacturing estimated their annual solution general accounting question

A: Explanation: First, we have to calculate the predetermined overhead rate. Since the company uses…

Q: Need help with this accounting questions

A: Explanation: In the given case, we are required to calculate the net change in total assets when…

Q: Alpha Corporation applies overhead costs to jobs on the basis of direct labor Costs.

A: Explanation of Overhead Costs:Overhead Costs refer to the indirect expenses incurred during the…

Q: Find the cost equation solution accounting question

A: Step 1: Definition of the High-Low MethodThe high-low method is used to estimate the variable and…

Q: A company has a net income

A: Concept of Net Income: Net income is the total profit a company earns after deducting all expenses,…

Q: I want to this question answer general Accounting

A: Step 1: Define Intangible AssetIntangible assets are those valuables that the company owns which…

Q: What is the equity at the end of the year on these accounting question?

A: Step 1: Define EquityEquity represents the residual interest in the assets of a company after…

Q: I need answer of this accounting questions

A: Interest revenue = Principal x Annual interest rate x Period 2024 = 6 months (July 1 - December 31,…

Q: Question: A companys total liabilities are $247,000, and its equity is $987,000. What are the total…

A: Explanation: In the given case, we are provided with the amount of total liabilities and equity. We…

Q: Need help with this accounting question

A: Step 1: Define EquityEquity represents the residual interest in the assets of a company after…

Q: What amount would be subject to capital gains tax?? General accounting

A: Step 1: Definition of Capital Gains TaxCapital gains tax is a tax on the profit earned from the sale…

Q: Compute the firm's gross profit margin?

A: Step 1: Define Gross MarginGross profit margin refers to the profit made by a company before the…

Q: Compute AMR corporations pension expense????

A: Step 1: Define PensionA pension plan can be a defined benefit plan or a defined contribution plan.…

Q: I need this question answer general accounting question

A: Step 1: Define Variance AnalysisVariance analysis can be used to identify any discrepancies in the…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Operating Leverage FactorThe operating leverage factor measures how a change…

Q: A firm sells 2,800 units of an item each year. The carrying cost per unit is $3.26 and the fixed…

A: Explanation of Economic Order Quantity (EOQ): This is a formula used in inventory management that…

Q: Please provide this question solution general accounting

A: Given:EPS (Earnings Per Share) = $2.25Book Value Per Share = $22.80Market/Book Ratio = 1.9xCalculate…

Q: Please provide this question solution general accounting

A: Given Data:Profit Margin = 6.3% = 0.063Total Asset Turnover = 1.10Equity Multiplier = 1.53To…

Q: The total amount og deduction from an employee's gross pay is solve this question

A: Step 1: Define Employee DeductionsEmployee deductions are the deductions that are made on the gross…

Q: Accounting Problem: The markup on a new diamond ring should be 28% based on the selling price. If…

A: Explanation of Markup: Markup is the difference between the selling price and the cost of a product,…

Q: Don't use ai given answer accounting questions

A: To calculate the price-earnings (P/E) ratio, we first need to find the earnings per share (EPS) and…

Q: What is ending inventory??

A: Step 1: Define Cost of GoodsThe cost of inventory held for sale, the cost of sales, and the cost of…

Q: Need help with this accounting questions

A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the residual interest in…

Q: General Accounting Question

A: Step 1: Define Stockholders' EquityStockholders' Equity represents the residual interest in the…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Interest RevenueInterest revenue represents the income earned from lending…

Q: Goodwill is an example of

A: Concept of Tangible Assets:Tangible assets are physical items owned by a business that provide…

Q: Delta corporation issued

A: Detailed Explanation: Solution Key Information: Number of shares issued: 25,000 sharesPar value per…

Q: Accounting 21

A: Concept of Activity Cost Pools:Activity cost pools are categories that group costs based on…

Q: I want to this question answer general Accounting not use ai

A: Step 1: Define Absorption CostingAbsorption costing is used to calculate the value of inventory. In…

Q: Calculate the standard cost per unit for ABC company??

A: Step 1: Define Standard costsThe standard costs are determined to calculate the per unit cost of the…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Days Sales in Receivables (DSR)Days Sales in Receivables (DSR) measures how…

Q: Determine the number of equivalent units of production with respect to direct materials and…

A: To calculate the equivalent units of production for the Converting Department, we use the…

Q: T-REX manufacturing had total manufacturing costs are $418,000

A: Explanation of Beginning Work-in-Process (WIP) Inventory:Beginning Work-in-Process (WIP) inventory…

Q: Hello tutor please provide correct answer general Accounting

A: Step 1: Define GoodwillSometimes a company pays a higher amount to acquire an asset than its fair…

Q: Provide correct answer general Accounting

A: Step 1: Define Accumulated DepreciationAccumulated depreciation refers to the sum of depreciation…

Q: Calculate operating cash flow accounting questions

A: Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) is the cash generated from…

Q: Hello teacher please help me this question

A: Step 1: Define Standard CostThe standard cost per unit of raw materials is the expected or budgeted…

Q: Please need help with this accounting question

A: The budgeted manufacturing cost per unit is the total estimated cost of production (including both…

Q: A business purchases equipment for $25,000, paying $6,000 in cash and signing a note payable for the…

A: Concept of Total Cost:The total cost refers to the complete monetary value of an asset, including…

Q: Financial Accounting Question please solve this problem

A: Step 1: Define Preferred Stock OutstandingPreferred stock outstanding refers to the number of…

Q: If a company has sales revenue of $120,000, cost of goods sold of $70,000, and operating expenses of…

A: Step 1: Introduction to income statementIncome statement is referred to as the financial statement…

Q: I want answer to 3 parts

A: Part(a): Predetermined Overhead Rate, when the Company uses Direct Labor hoursPredetermined Overhead…

Q: Financial Accounting Question please answer

A: Return on Equity (ROE):ROE=Net Income/Common Equity×100ROE=40,000/300,000×100=13.33% Return on…

Q: Assume the company uses variable costing. Determine its product cost per unit.

A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…

Q: Provide correct answer general Accounting

A: Step 1: Define Return on Common Equity (ROCE)ROCE compares a company's income to the amount of…

Question

I need this question answer general Accounting

Johnson Manufacturing estimates total factory
overhead of $600,000 and 30,000 machine hours for
the year. If actual machine hours were 28,000 and
actual factory overhead was $580,000, calculate the
overapplied or underapplied overhead.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was $445,000, and there were 50,500 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?