Osborn Manufacturing uses a predetermined overhead rate of $19.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $272,630 of total manufacturing overhead for an estimated activity level of 13,700 direct labor-hours. The company actually incurred $270,000 of manufacturing overhead and 13,200 direct labor-hours during the period. Required: 1. Calculate the underapplied or overapplied manufacturing overhead. 2. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the closing journal entry increase or decrease gross margin? By how much? 1. Manufacturing overhead 2. The gross margin would by by

Osborn Manufacturing uses a predetermined overhead rate of $19.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $272,630 of total manufacturing overhead for an estimated activity level of 13,700 direct labor-hours. The company actually incurred $270,000 of manufacturing overhead and 13,200 direct labor-hours during the period. Required: 1. Calculate the underapplied or overapplied manufacturing overhead. 2. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the closing journal entry increase or decrease gross margin? By how much? 1. Manufacturing overhead 2. The gross margin would by by

Name: Osborn Manufacturing uses a predetermined overhead rate of $19.90 per
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Osborn Manufacturing uses a predetermined overhead rate of $19.90 per direct labor-hour. This predetermined rate was based on acost formula that estimates $272,630 of total manufacturing overhead for an estimated activity level of 13,700 direct labo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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
estion 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? et ered O a. Overhead is overapplied by OMR 15,000. ed out of O b. None of the given answer is correct O c. Overhead is underapplied by OMR 15,000. O d. Overhead is underapplied by OMR 5,000. ion O e. Overhead is overapplied by OMR 5,000.
Osborn Manufacturing uses a predetermined overhead rate of S19.00 per direct labor hour. This predetermined rate wae 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 annd 12,300 direct labor-hours during the period Required: 1. Determine the amount of underapplied or overapplied manufecturing averhead 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 dis pose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1 Manufacturing overhead underappled by 2 The gross margin would decrease
← Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost. The manufacturing overhead cost allocated during the year is $280,000. The details of production and costs incurred during the year are as follows: Actual direct materials cost Actual direct labor cost $811,000 $170,000 $262,000 5,520 hours Actual overhead costs incurred Total direct labor hours What is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places.) OA. 164.71% OB. 34.53% OC. 93.57% O D. 64.89% XXID
The Ruqaiyah Company estimated Department A's overhead at P255,000 for the period based on an estimated volume of 100,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a balance of P265,500; actual direct labor hours were 105,000. What was the over- or under-applied overhead for the period? * A. P2,250 B. P(2,250) C. P15,000 D. P(15,000)
Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $270,000 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 12,500 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead applied
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 $326,100 and direct labor hours would be 48,500. Actual manufacturing overhead costs incurred were $314,800, and actual direct labor hours were 54,100. What is the predetermined factory overhead rate per direct labor hour? 55.36 b. 58.07 $10.09 4. $6.72
Luthan Company uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $267,600 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 $266,000 and 12,400 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Manufacturing overhead was estimated to be OMR 400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was OMR 415,000, and actual labor hours were 21,000. Which of the following would be correct? O a. None of the given answer is correct b. Overhead is overapplied by OMR 5,000. C. Overhead is underapplied by OMR 5,000. d. Overhead is overapplied by OMR 15,000. e. Overhead is underapplied by OMR 15,000.
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $421,800; materials of $412,000 and direct labor of $222,000. During the year Adams incurred $444,600 in materials costs, $439,600 in overhead costs and $226,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
Show the complete solution.