Osborn Manufacturing uses a predetermined overhead rate of S19.00 per direct labor hour. This predetermined rate wae based on acost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12 800 direct labor-hoursThe company actually incurred $241,000 of manufacturing overhead annd 12,300 direct labor-hours during the periodRequired: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 todis pose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much?1 Manufacturing overhead underappledby2 The gross margin would decrease

Manufacturing overhead are the indirect manufacturing costs incurred in the production process. For…

Answered: Osborn Manufacturing uses a…

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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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.
im.3
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
← 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
Assume the following: 1. Estimated fixed manufacturing overhead for the coming period of $220,000 2. Estimated variable manufacturing overhead of $2.00 per direct labor hour 3. Actual manufacturing overhead for the period of $320,000 4. Actual direct labor-hours worked of 54,000 hours 5. Estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: Note: Round your intermediate value of "Predetermined overhead rate" to two decimal places. Multiple Choice $325,926. $324,000. $336,004.
kk.2
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.
Osborn Manufacturing uses a predetermined overhead rate of $18.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $227,550 of total manufacturing overhead for an estimated activity level of 12,300 direct labor-hours. The company actually incurred $221,000 of manufacturing overhead and 11,800 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 2. The gross margin would by by
Malcolm Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The estimates for the year were: Manufacturing overhead $16,240 Direct labor hours 11,600 The actual results for the year were: Manufacturing overhead $21,700 Direct labor hours 13,000 The cost records for the year will show Group of answer choices Overapplied overhead of $5,460. Underapplied overhead of $5,460 Overapplied overhead of $ 3,500. Underapplied overhead of $3,500
ABC Inc. uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. The predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead cost for an estimated 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $270,000 and 11,800 direct labor-hours. Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Luthan Company uses a plantwide predetermined overhead rate of $23.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $285,600 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 $269,000 and 11,200 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.

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