2. Set up a simple job-order cost sheet for all jobs in process during June.Naranjo CompanyJob-Order Cost SheetsJob 39Job 40Job 41Job 42Balance, June 1Total3. What if the expected direct labor rate at the beginningthe year was $28 instead of $35? What would the overhead rate be? If required, round your overhead rate answer toone decimal place.New budgeted direct labor cost =New overhead rate =% of direct labor costHow would the cost of the jobs be affected? Job Costs Using a Plantwide Overhead RateNaranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $262,500, and budgeted direct labor hours were 15,000. The averagewage rate for direct labor is expected to be $35 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:Job 39Job 40Job 41Job 42Beginning balance$26,600$35,400$17,800$800Materials requisitioned20,40022,0008,10012,500Direct labor cost11,50019,1002,7503,400Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. (Naranjo had originally developedJob 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 ininventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.Required:1. Calculate the overhead rate based on direct labor cost.% of direct labor cost

Overhead rate=Budgeted overhead/Budgeted direct labor cost Work in process relates to inventory…

Answered: Naranjo Company designs industrial…

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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Pinnacle Corp. budgeted $218,050 of overhead cost for the current year. Actual overhead costs for the year were $207,500. Pinnacle's plantwide allocation base, machine hours, was budgeted at 53,300 hours. Actual machine hours were 46,460. A total of 91,830 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$2.26 per machine hour b.$4.09 per machine hour c.$3.89 per machine hour d.$2.37 per machine hour
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 14,000 hours for production: Variable overhead cost: Indirect factory labor $44,800 Power and light 10,360 Indirect materials 21,000 Total variable overhead cost $ 76,160 Fixed overhead cost: Supervisory salaries $54,380 Depreciation of plant and equipment 14,310 Insurance and property taxes 26,710 Total fixed overhead cost 95,400 Total factory overhead cost $171,560 Tannin has available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $40,560…
Roget Factory has budgeted factory overhead for the year at $15,500,000. It plans to produce 2,000,000 units of product. Budgeted direct labor hours are 1,050,000, and budgeted machine hours are 750,000. Using a single plantwide factory overhead rate based on direct labor hours, the factory overhead rate for the year is a. $20.67 b. $77.50 c. $7.75 Od. $14.76
The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly Department based on a budgeted volume of 100,000 direct labor hours. At the end of the period, the factory overhead control account for the Assembly Department had a balance of $252,000. The actual (and allowed) direct labor hours were 103,000. What was the over- or underapplied factory overhead for the period?
Roget Factory has budgeted factory overhead for the year at $4,392,000. It plans to produce 2,000,000 units of product. Budgeted direct labor hours are 360,000, and budgeted machine hours are 750,000. Using a single plantwide factory overhead rate based on direct labor hours, the factory overhead rate for the year is a.$12.20 b.$15.86 c.$6.10
Pinnacle Corp. budgeted $226,430 of overhead cost for the current year. Actual overhead costs for the year were $213,870. Pinnacle's plantwide allocation base, machine hours, was budgeted at 51,960 hours. Actual machine hours were 53,550. A total of 102,150 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: Oa. $4.12 per machine hour Ob. $4.36 per machine hour Oc. $2.22 per machine hour Od. $2.09 per machine hour
Cabinare Inc. Is one of the largest manufacturers of office furniture in the United States. In Grand Rapids Michigan and assembles filing cabinets in a assembly Department. Assume following nformation for the assembly departments: Direct labor per filing cabinets 30 min Supervisor salaries $132,000 per month Depreciation $24,000 per month Direct labor rate $21 per hr. Prepare a flexible budget for 13,000,16,000,and 20,000 filing cabinets for the month ending February 28 in assembly departments similar to exhibit 5 Round your final answer to the whole dollar, if required.
The Assembly Department produced 5,000 units of product during March. Each unit required 2.20 standard direct labor hours. There were 11,500 actual hours used in the Assembly Department during March at an actual rate of $17.60 per hour. The standard direct labor rate is $18.00 per hour. Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31. If an amount box does not require an entry, leave it blank. Date Account Debit Credit March 31
Mannitou Company made the following predictions for the year: Budgeted factory overhead costs Budgeted direct labor hours Budgeted machine hours $300,000 50,000 hours 100,000 hours Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs. If factory overhead is applied based on machine hours, the cost of Job A2 for Mannitou Company is Oa. $75,000. Ob. $63,000. Oc. $69,000. Od. $66,000.
please answer and explain correctly and completely with all work
Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $460 per month plus $106 per job plus $26 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 16 jobs and 126 meals, but the actual activity was 10 jobs and 109 meals. The actual cost for catering supplies in December was $4,850. The spending variance for catering supplies in December would be closest to: Multiple Choice O O O $582 U $582 F $496 U $496 F
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $138,000 Number of setups 10,200 Number of orders 92,400 Machine hours 18,480 Receiving hours phones with the following expected activity demands: Setting up equipment Ordering materials Machining Receiving Silven produces two models of cell Model X 5,000 80 200 6,600 385 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y 10,000 40 400 4,950 770 120 600 11,550 1,155

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