Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machinehours. The following information is available for the year just ended:Standard variable-overhead rate per hour: $7.30Standard fixed-overhead rate per hour: $12.60Planned activity during the period: 20,000 machine hoursActual production: 12,700 finished unitsMachine-hour standard: Two completed units per machine hourActual variable overhead: $164,500Actual total overhead: $462,950OActual machine hours worked: 23,500Required:1. Calculate the budgeted fixed overhead for the year.2. Compute the variable-overhead spending variance.3. Calculate the company's fixed-overhead volume variance.4-a. Did Maxwell spend more or less than anticipated for fixed overhead?4-b. What was the difference in actual and anticipated overhead?5. Was variable overhead underapplied or overapplied during the year? By how much?Complete this question by entering your answers in the tabs below.Req 1Reg 2Reg 3Req 4AReq 4BReq 5Calculate the budgeted fixed overhead for the year.Budgeted fixed overheadRenRea 2 >< Prev3 of 3NextMacBook PrO%23$4%&*379.ERYFGKCV..

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $280,800 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $268,000 and 12,700 total direct labor-hours during the period. Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
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k A ances Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 28,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $525,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $668,325 and its actual total direct labor was 28,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
Kingsport Containers Company makes a single product with wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Direct materials Direct labor Manufacturing overhead Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) (b) First $ 200,000 120,000 230,000 $ 550,000 Required 1 Required 2 Complete this question by entering your answers in the tabs below. 120,000 $ 4.58 The as production Quarter Required 3 Required 4 Second $ 100,000 60,000 206,000 $366,000 60,000 $ 6.10 Management finds the variation in quarterly unit product costs to be confusing. Accordingly, you have been asked to find a more appropriate way of applying manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable…
Required information [The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 54,000 machine-hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph 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 information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 200,000 15,000 Job C-200 Direct…
Luthan Company uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $266,000 and 12,400 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Henkes Corporation 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 65,000 labor-hours. The estimated variable manufacturing overhead was $8.10 per labor-hour and the estimated total fixed manufacturing overhead was $1,092,000. The actual labor-hours for the year turned out to be 67,800 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year Note: Round your answer to 2 decimal places. Predetermined overhead rate per labor-hour
Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upćoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 80,000 labor-hours. The estimated variable manufacturing overhead was $10.70 per labor-hour and the estimated total fixed manufacturing overhead was $1,440,000. The actual labor-hours for the year turned out to be 84,000 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.) Predetermined overhead rate per labor-hour
The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $ 31,000 Actual fixed overhead cost incurred $ 12,000 Budgeted fixed overhead cost $ 14,000 Actual machine hours 4,000 Standard machine hours allowed for the units manufactured 5,200 Denominator volume—machine hours 4,500 Standard variable overhead rate per machine hour $ 3 The total actual variable factory overhead cost incurred during the year was: Multiple Choice $19,000. $20,000. $18,000. $19,400. $19,100.
Cullumber Company estimates that annual manufacturing overhead costs will be $768,000. Estimated annual operating activity bases are: direct labor cost $588,800, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $769,280 and the actual direct labor cost for the year was $583,680. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000. Cullumber applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount. (Round predetermined overhead rate to 2 decimal places, e.g. 15.25 and all other answers to O decimal places, e.g. 1,525.) Predetermined overhead rate $ Manufacturing overhead applied $ $ per direct labor hour
Richey Company uses an actual cost accounting system that applies overhead on the basis of direct labor hours. At the beginning of the year, management estimated that during the year, the company would work 26,000 direct labor hours and budgeted $1,300,000 for MOH. The company actually worked 24,000 direct labor hours and incurred the following actual manufacturing costs: Direct materials used in production $1,240,000 Direct labor 1,800,000 Indirect labor 300,000 Indirect materials 220,000 Insurance 150,000 Utilities 190,000 Repairs and Maintenance 180,000 Depreciation 320,000 Determine the amount of underapplied or overapplied overhead for the year.

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