Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of thetransactions that it recorded during a recent month is shown below.Jurvin Enterprises uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. Thispredetermined rate was based on a cost formula that estimated $257,400 of total manufacturingoverhead cost for an estimated activity level of 11,000 direct labor-hours.The company incurred actual total manufacturing overhead cost of $249,000 and 10,800 total directlabor-hours during the period.Required:Determine the amount of manufacturing overhead cost that would have been applied to all jobs duringthe period.Manufacturing overheadapplied

The manufacturing overhead is applied to the job by multiplying the predetermined overhead rate by…

Answered: Jurvin Enterprises is a manufacturing…

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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Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year—Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period’s estimated level of production. Sweeten also estimated $32,200 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.50 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 14,500 $…
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $254,000 and direct labor hours to be 20,000. Actual overhead for the year was $270,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 22,400 direct labor hours, how much manufacturing overhead is applied to their job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined Overhead Rate
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
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:
Osborn Manufacturing uses a predetermined overhead rate of $19.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $272,630 of total manufacturing overhead for an estimated activity level of 13,700 direct labor-hours. The company actually incurred $270,000 of manufacturing overhead and 13,200 direct labor-hours during the period. Required: 1. Calculate the underapplied or overapplied manufacturing overhead. 2. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the closing journal entry increase or decrease gross margin? By how much? 1. Manufacturing overhead 2. The gross margin would by by
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,720 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $246,000 and actual direct labor-hours were 4,590. The predetermined overhead rate for the year was closest to:
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
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $262,000 and direct labor hours to be 20,000. Actual overhead for the year was $290,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Applied Manufacturing Overhead 89 SEP 17 Next > A O
The following information has been gathered for the Harrell Manufacturing Company for its fiscal year ending December 31: Actual manufacturing overhead costs $ 229,500 Actual direct labor hours 56,600 Actual direct labor costs $ 462,000 Estimated manufacturing overhead costs $ 196,180 Estimated direct labor $ 451,000 Estimated direct labor hours 57,700 What is the predetermined manufacturing overhead rate per direct labor hour?
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 $489,720 and direct labor hours would be 48,972. Actual factory overhead costs incurred were $511,421, and actual direct labor hours were 53,273. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$21,309 overapplied b.$43,010 underapplied c.$532,730 overapplied d.$21,309 underapplied
A company recorded $42,400 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $42,700 would be incurred, and 4,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.
At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $840,000, and direct materials costs, $600,000. At year-end, the company's records show that actual overhead costs for the year are $691,300. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $360,000 76,000 51,000 Total actual direct materials cost $487,000 1. Determine the predetermined overhead rate. es 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Enter the overhead costs incurred and the amounts applied…

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