Osborn Manufacturing uses a predetermined overhead rate of $19.00 per direct labor-hour. This predetermlined rate was based on acost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12,800 direct labor-hours.The company actually Incurred $241,000 of manufacturing overhead and 12,300 direct labor-hours during the perlod.Requlred:1. Determine the amount of underapplied or overapplied manufacturing overhead for the perlod.2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry todispose of the underapplied or overappled overhead Increase or decrease the company's gross margin? By how much?1. Manufacturing overheadby2. The gross margin wouldby

Name: Osborn Manufacturing uses a predetermined overhead rate of $19.00 per
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Description: Osborn Manufacturing uses a predetermined overhead rate of $19.00 per direct labor-hour. This predetermlined rate was based on acost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12,800 direct lab

Applied manufacturing overhead = Actual direct labor hours x Predetermined overhead rate = 12300…

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Osborn Manufacturing uses a predetermined overhead rate of $19.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12,800 direct labor-hours. The company actually Incurred $241,000 of manufacturing overhead and 12,300 direct labor-hours during the perlod. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the perlod. 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

Osborn Manufacturing uses a predetermined overhead rate of $19.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12,800 direct labor-hours. The company actually Incurred $241,000 of manufacturing overhead and 12,300 direct labor-hours during the perlod. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the perlod. 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

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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Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that direct material costs will amount to $1,460,000. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materials costs were $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,600,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory Finished goods inventory Cost of goods sold Required: Prepare an entry to allocate the over- or underapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list No A $ 492,250 $1,163,500 $7,294,250 Transaction 1 View journal entry worksheet General Journal Applied manufacturing overhead Work-in-process inventory Debit 7,294,250 Credit
Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $365,280. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $9,200, and the actual manufacturing overhead was $362,560. The predetermined overhead rate for the year must have been closest to: Multiple Choice O O $15.62 per direct labor-hour $15.22 per direct labor-hour $15.11 per direct labor-hour $15.49 per direct labor-hour
Mountain View Company is a manufacturing firm that operates a job-order costing system. Overhead costs are applied to jobs on the basis of direct labour-hours. At the beginning of the year, management estimated that the company would incur $192,000 in manufacturing overhead costs and work 8,000 direct labour-hours. Required: 1. Compute the company's predetermined overhead rate.
Manufacturing overhead was estimated to be OMR 200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was OMR 215,000, and actual labor hours were 21,000. Which of the following would be correct? a. Overhead is overapplied by OMR 15,000. bOverhead is underapplied by OMR 5,000. of the given answer is correct d . Overhead is underapplied by OMR 15,000 . e. Overhead is overapplied by OMR 5,000 .
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
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
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $329,900 and direct labor hours would be 43,500. Actual manufacturing overhead costs incurred were $308,200, and actual direct labor hours were 51,900. What is the predetermined factory overhead rate per direct labor hour? a. $6.07 b. $11.38 c. $7.58 d. $9.10
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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A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $233,125 and direct labor hours would be 46,625. Actual factory overhead costs incurred were $247,123, and actual direct labor hours were 51,484. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$24,295 underapplied b.$257,420 overapplied c.$10,297 underapplied d.$10,297 overapplied
Berry Company applies overhead on the basis of direct labor hours. Given the following data, calculate overhead applied and the under- or over-application of overhead for the period: Estimated annual overhead cost $450,000 Actual annual overhead cost $445,000 Estimated direct labor hours 90,000 Actual direct labor hours 88,000