Kenmore Fabrication estimated that direct labor cost for the year would be $640,800. The company also estimated that fixed overhead would be $480,600 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($480,600) and variable overhead was also incurred as expected. There was $30,150 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost $ 619,044

Kenmore Fabrication estimated that direct labor cost for the year would be $640,800. The company also estimated that fixed overhead would be $480,600 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($480,600) and variable overhead was also incurred as expected. There was $30,150 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost $ 619,044

Name: Kenmore Fabrication estimated that direct labor cost for the year wou
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Description: Kenmore Fabrication estimated that direct labor cost for the year would be $640,800.The company also estimated that fixed overhead would be $480,600 and variableoverhead would be 35 percent of direct labor cost. Kenmore applies its overhead on theba

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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Winston Company estimates that total factory overhead for the following year will be $1,050,300. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 38,900 hours. The total machine hours for the year were 54,200. The actual factory overhead for the year was $1,455,000. a. Determine the total factory overhead applied. Round to the nearest dollar. b. Compute the over- or underapplied factory overhead for the year. c. Journalize the entry to transfer the over- or underapplied factory overhead to Cost of Goods Sold. If an amount box does not require an entry, leave it blank.
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Osborn Manufacturing uses a predetermined overhead rate of $19.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period. Can you please help me with the following: Determine the amount of underapplied or overapplied manufacturing overhead for the period, then 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?
Kenmore Fabrication estimated that direct labor cost for the year would be $641,600. The company also estimated that fixed overhead would be $481,200 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($481,200) and variable overhead was also incurred as expected. There was $30,300 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost
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REQUIREMIENTS: What is the predetermined overhead rate? What is the amount of overhead applied for February? If the actual overhead for February is $64,700, what is the overhead variance and is it overapplied or underapplied?
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