Nafth Company has an Equipment Services Department that performs all needed maintenance work on theequipment in the company's Fabrication and Assembly Departments. Costs of the equipment ServicesDepartment are charged to the Fabrication and Assembly Departments on the basis of direct labor-hours. Dataon direct labor-hours for last year follow:Budgeted direct labor-hoursActual direct labor-hoursPeak-period direct labor-hoursFabrication AssemblyTotal21,00051,00072,00026,00056,00082,00031,00071,000102,000For the year just ended, the company budgeted its variable maintenance costs at $220,000 for the year. Actualvariable maintenance costs for the year totaled $265,000.For performance evaluation purposes, how much of the $265,000 of actual variable maintenance cost should becharged to the Assembly Department at the end of the year just ended?Note: Do not round your intermediate calculations.

Step 1:First calculate the predetermined overhead rate: Predetermined overhead rate = Budgeted…

Answered: Nafth Company has an Equipment Services…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

See similar textbooks

Similar questions

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
Nafth Company has an Equipment Services Department that performs all needed maintenance work on the equipment in the company's Fabrication and Assembly Departments. Costs of the equipment Services Department are charged to the Fabrication and Assembly Departments on the basis of direct labor-hours. Data on direct labor-hours for last year follow: Fabrication Assembly Total Budgeted direct labor-hours 30,000 60,000 90,000 Actual direct labor-hours 35,000 65,000 100,000 Peak-period direct labor-hours 40,000 80,000 120,000 For the year just ended, the company budgeted its variable maintenance costs at $310,000 for the year. Actual variable maintenance costs for the year totaled $355,000. For performance evaluation purposes, how much of the $355,000 of actual variable maintenance cost should be charged to the Assembly Department at the end of the year just ended? (Do not round your intermediate calculations.)
Correct status of manufacturing overhead at year end?
A company has identified the following overhead costs and cost drivers for the coming year. Overhead item Cost driver Budgeted Activity Budgeted Overhead Machine set – up Number of sets – up 200 P 20,000 Inspection Number of inspections 6,500 P130,000 Material handling Number of materials moves 8,000 P 80,000 Engineering Number of engineering hours 1,000 P 50,000 Total P 280,000 The following information was collected on three jobs that were completed during the year: Job 101 Job 102 Job 103 Direct materials P 5,000…
Kindly help me with accounting questions
A manufacturer uses machine hours to assign overhead costs to products. Budgeted information for the next year follows. Budgeted factory overhead costs Budgeted machine hours Compute the plantwide overhead rate for the next year based on machine hours. Plantwide overhead rate $431,200 5,600 per MH
Need help with this question solution general accounting
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials Indirect labor Depreciation-Building Depreciation-Furniture Utilities Insurance Property taxes Other expenses Total $ 500,000 1,900,000 333,000 65,000 385,000 54,000 68,000 175,000 $ 3,480,000 The firm estimates total direct labor cost for the year to be $2,175,000. The firm uses direct labor cost as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Gargus account Direct labor $ 4,500 Feller account Direct labor $ 10,500 Required: 1. Compute the firm's predetermined overhead rate. 2. Compute the amount of overhead to be charged to the Gargus and Feller accounts using the predetermined overhead rate calculated in requirement 1. 3. Compute total job cost for the Gargus account and the Feller account.
Solve this question and accounting
Zoe Company reports the following for its overhead cost for the year. Activity Budgeted Cost Budgeted Activity Usage Engineering support $127,200 80 design changes Electricity 265,000 5,300 machine hours Setup 426,600 540 setups Compute the activity rate for engineering support using activity-based costing.
Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on direct labor costs. The production details for the year are given below: Total manufacturing overhead costs estimated at the beginning of the year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year Actual manufacturing overhead costs for the year Actual direct labor costs for the year Actual direct labor hours for the year 11,000 di 10,000 di Calculate the manufacturing overhead allocation rate for the year based on the above data (Round your final answer to two decimal places.) A. 28.00% B. 11.43% OC. 43.75% OD. 264.29%

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS