Muscat Factory applies, manufacturing overhead based on machine hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing OMR overhead 600,000 costs Estimated 500,000 manufacturing overhead Actual machine hours 4,000 used Estimated machine 250,000 hours Estimated labor hours 5,000 Actual labor hours 4,300 The amount of under or overapplied overhead is:

Muscat Factory applies, manufacturing overhead based on machine hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing OMR overhead 600,000 costs Estimated 500,000 manufacturing overhead Actual machine hours 4,000 used Estimated machine 250,000 hours Estimated labor hours 5,000 Actual labor hours 4,300 The amount of under or overapplied overhead is:

Name: Actual machine hours 4,000usedEstimated machine250,000hoursEstimated
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Description: Actual machine hours 4,000usedEstimated machine250,000hoursEstimated labor hours 5,000Actual labor hours4,300The amount of under oroverapplied overhead is:Select one:O a. 240,000 overappliedO b. 8,000 underappliedO c. 200,000 underappliedd. 600,000

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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A company estimates the following manufacturing costs at the beginning of the period: direct labor, $532,000; dir $203,000; and factory overhead, $142,000. Required: 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its predetermined overhead rate as a percent of direct materials. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its predetermined overhead rate as a percent of direct labor. Numerator: 1 1 Overhead Rate Denominator: Required 1 = Overhead Rate Overhead Rate = = Required 2 >
Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $282,000 and machine hours to be 14,100. Actual manufacturing overhead and machine hours were $315,000 and 15,100, respectively. Required: 1. & 2. Prepare the journal entries for actual and applied manufacturing overhead and transfer of manufacturing overhead account balance to cost of goods sold.
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $274,000 and direct labor hours to be 20,000. Actual overhead for the year was $320,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 24,400 direct labor hours, how much manufacturing overhead is applied to the company's jobs?
How much is the estimated maufacturing overhead at the beginning of the year which was used in the predetermined overhead rate? *please present in good accounting form.
One Company uses a normal, traditional (functional) cost system and applies overhead to production based on machine hours. The accounting system provided the following information. Estimated overhead cost $150,000 Actual overhead cost $140,000 Estimated machine hours 20,000 hours Actual machine hours 25,000 hours Calculate the amount of applied overhead assigned to production for the period. $150,000 $112,000 $140,000 $187,500
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost $7,234.50 $3,565.50 69 12 10 20 9 21 492 697 111 1. If the company allocates overhead to products using assembly hours as the single allocation base, how much overhead will be allocated to product X? A. $1,706 B. $784 C. $618 D. $304 2. How much overhead cost would be assigned to Product V using the activity-based costing system? A. $158 B. $91,722 C. $10,385 D. $5,485
Sohar Soap Factory applies manufacturing overhead based on machine hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing overhead costs R.O.360,000 6,000 1,500,000 10,000 300,000 Estimated labor hours Estimated manufacturing overhead Actual machine hours used Estimated machine hours Actual labor hours used 7,500 The amount of manufacturing overhead to be applied is: Select one: O a. 200,000 O b. 10,000 O c None of the answers are correct O d. 50,000 O e. 120,000
ces Cadbury Company uses a job order cost system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $120,080 for the year; direct labor was estimated to total $150,100. Additional information for the year is as follows: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Raw materials purchases Direct materials used Direct labor Indirect materials used Indirect labor Factory equipment depreciation Factory rent Factory utilities Other factory costs Beginning Inventory (1/1) $ 13,100 19,800 42,300 Required: a. Calculate the predetermined overhead rate. b. Calculate cost of goods manufactured. Ending Inventory (12/31) $ 101,000 93,800 125,800 11,700 16,300 $ 8,600 22,900 30,300 26,100 20,600 c. Calculate the over- or underapplied overhead. d. Calculate adjusted cost of goods sold. 8,300 7,600
ATZOmpany uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. X and on machine-hours in Dept. Y. At the beginning of the year, the :Corporation made the following estimates Dept. Y Dept. X 40,000 OMR 60,000 OMR Direct labor cost 60,000 OMR100,000 OMR Manufacturing overhead 15,000 6,000 Direct labor-hours 9,000 2,000 Machine-hours What predetermined overhead rates would be used in Dept. X and Dept. Y, ?respectively None of the given answers .a and OMR 4.00 200% .b and OMR 6.67 167% .c O and OMR 4.00 167% .d .e and OMR 5.00 150%
Osborn Manufacturing uses a predetermined overhead rate of $18.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $224,480 of total manufacturing overhead for an estimated activity level of 12,200 direct labor-hours. The company actually incurred $219,000 of manufacturing overhead and 11,700 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. 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? 1. Manufacturing overhead by 2. The gross margin would by
Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour Recently, Job K913 was completed with the following characteristics: Total direct labor-hours Direct materials Direct labor cost 150 $ 705 $ 4,650 70,000 $ 511,000 $ 2.10 The total job cost for Job K913 is closest to: (Round your intermediate calculations to 2 decimal places.)
Kareem Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost OMR 1,600,000 Actual annual overhead cost OMR 1,575,000 Estimated machine hours 400,000 Estimated Labor hours 200,000 Actual Labor hours 150,000 Actual machine hours 390,000