Oriole Company provided the following information from its accounting records for 2019. Expected production 100000 labor hours Actual production 96000 labor hours Budgeted overhead $900000 Actual overhead $860000 How much is the overhead application rate if Oriole Company bases the rate on direct labor hours? $9.00 per hour $9.38 per hour $8.96 per hour $8.60 per hour

Oriole Company provided the following information from its accounting records for 2019. Expected production 100000 labor hours Actual production 96000 labor hours Budgeted overhead $900000 Actual overhead $860000 How much is the overhead application rate if Oriole Company bases the rate on direct labor hours? $9.00 per hour $9.38 per hour $8.96 per hour $8.60 per hour

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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Your Company uses a predetermined overhead rate based on direct labor hours. The POR is $10 per direct labor hour. Use the following information to determine by how much the manufacturing overhead cost for the current year will be over or under applied. Direct labor-hours: Estimated for the year 25,000 Actual hours worked 25,600 Direct labor cost: Estimated for the year $300,000 Actual cost incurred $210,000 Manufacturing overhead: Estimated for the year $250,000 Actual cost incurred $252,000 The manufacturing overhead cost for the current year will be: O $6,000 under applied O $6,000 over applied O $4,000 over applied O $4,000 under applied
Applying Factory Overhead Jernigan Company estimates that total factory overhead costs will be $378,000 for the year. Direct labor hours are estimated to be 27,000. a. For Jernigan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places.$fill in the blank fb95c2fa601df9b_1 per direct labor hour b. During August, Jernigan Company accumulated 550 hours of direct labor costs on Job 40 and 520 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August.$fill in the blank fb95c2fa601df9b_2 c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.
Checker Inc. produces automobile bumpers. Overhead is applied on the basis of machine hours required for cutting and fabricating. A predetermined overhead application rate of $12.70 per machine hour was established for 2019. Required: If 9,000 machine hours were expected to be used during 2019, how much overhead was expected to be incurred? Actual overhead incurred during 2019 totaled $121,650, and 9,100 machine hours were used during 2019. Calculate the amount of over- or underapplied overhead for 2019. (Input the amount as positive value.) Whether the overapplied or underapplied overhead for the year is normally transferred to cost of goods sold in the income statement?
The Thomlin Company forecasts that total overhead for the current year will be $11,764,000 with 180,000 total machine hours. Year to date, the actual overhead is $7,870,000 and the actual machine hours are 83,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$3,217,500 overapplied b.$3,217,500 underapplied c.$2,475,000 underapplied d.$2,475,000 overapplied
Cavy Company estimates that total factory overhead costs for the following year will be $994,000. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 35,500 hours. Compute the predetermined factory overhead rate.fill in the blank 1 of 1$ per machine hour
During March 2019, Annapolis Corporation recorded $42,400 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $42,700 would be incurred, and 4,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.
During 2022, Carla Vista Company incurred the following direct labor costs: January $19,200 and February $28,800. Carla Vista uses a predetermined overhead rate of 120% of direct labor cost. Estimated-overhead for the 2 months, respectively, totaled $18,720 and $34,272. Actual overhead for the 2 months, respectively, totaled $24,000 and $32,160. Calculate overhead applied. January February $ Determine if overhead is over- or underapplied for each of the two months and the respective amounts. January $ February I
Oriole Company provided the following information from its accounting records for 2019: Expected production 100000 labor hours Actual production 96000 labor hours Budgeted overhead $2100000 Actual overhead $1840000 How much is the overhead application rate if Oriole Company bases it on direct labor hours? $21.00 per hour $19.17 per hour $21.88 per hour $18.40 per hour
Cavy Company estimates that the factory overhead for the following year will be $404,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 10,100 hours. Calculate the predetermined overhead rate to apply factory overhead. Round your answer to the nearest cent. $fill in the blank 1 per machine hour
Assume you made the following two predictions for 2022 for one of your production facilities: Total manufacturing overhead for the year $15,000,000Total direct labor hours for the year 800,000 Actual results for July 2022 were as follows: Manufacturing overhead $1,238,500Direct labor hours 98,500 Calculate the predetermine overhead rate per direct labor hour for 2022.
Cavy Company estimates that total factory overhead costs will be $1,011,028 for the year. Direct labor hours are estimated to be 100,700. a. Determine the predetermined factory overhead rate. Round your answer to the nearest cent.$fill in the blank 8b99eb02a009f9f_1 b. Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,200 and Job 999 if the amount of direct labor hours is 2,800. Job 567 $fill in the blank 8b99eb02a009f9f_2 Job 999 $fill in the blank 8b99eb02a009f9f_3 c. Prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate. fill in the blank aa9138f9703b038_2 fill in the blank aa9138f9703b038_4
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020. Inventory Beginning Ending Raw materials $9.100 $13,450 Workin process 5.110 8,880 Finished goods 9,870 6,880 Costs incurred: raw materials purchases $55,160, direct labor $51,800, manufacturing overhead $24,080. The specific overhead costs were: indirect labor $7.340, factory insurance $4,130, machinery depreciation $4,920, machinery repairs $2.460, factory utilities $3.450. and miscellaneous factory costs $1,780. Assume that all raw materials used were direct materials. (a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2020.