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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A company estimates the following manufacturing costs at the beginning of the period: direct labor, $488,000; direct materials, $204,000; and factory overhead, $137,000. Required: 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its predetermined overhead rate as a percent of direct materials. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its predetermined overhead rate as a percent of direct labor. Numerator: Overhead Rate Denominator: Overhead Rate = Overhead Rate
Moede Motors applies overhead based a single plant-wide rate and uses direct labor hours as the basis for the rate. At the beginning of the estimated that overhead costs would be $320,000 and estimated that direct labor hours would be 80,000. Actual hours incurred for Job A were 81,000. The total actual overhead costs for the company were $425,000. Compute the overhead applied to Job A, based on direct labor hours. O a. S320,000 O b.S324,000 O c.S419,753 O d. $425,000 year, Jackson QUESTION 14 Which of the following costs of quality (COQ) would be considered an internal preventative cost? O a. The cost of training employees in good customer service O b. The cost of a lawsuit when customers O. The cost of hiring employees O d. The cost of reworking products at minimum wage are injured using the product that fail while testing them QUESTION 15 If sales are S250.000, variable cost of goods sold is $25,000, variable selling expenses are $15,000 and fixed costs are S10,000, how much is the…
Assume (1) estimated fixed manufacturing overhead for the coming perlod of $217,000, (2) estimated varlable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the perlod of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (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: Multiple Cholce $333,204. $325.926. $321,300. $327,000.
Assume (1) estimated fixed manufacturing overhead for the coming period of $200,000, (2) estimated varlable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the perlod of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked In the coming perlod of 55,000 hours. The amount of overhead applied to production during the perlod is closest to: Multiple Choice $325,926. $304.560. $315,844. $310,000.
York Corporation is using a predetermined overhead rate of $22.30 per machine-hour that was based on estimated total fixed manufacturing I overhead of $446,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $409,000 and 18,200 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: $446,000 $37,000 $372,190 O $405,860
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Standard Hours Standard Rate Standard Cost Fixed manufacturing overhead 2 hours $ 6.00 per hour $ 12.00 During the most recent period, the following additional information was available: The total actual fixed overhead cost was $275,000. The budgeted amount of fixed overhead cost was $285,000. 46,000 direct labor-hours were actually used to produce 24,190 units. How much fixed overhead was applied to work in process? Multiple Choice $289,280 $286,280 $290,280 $288,280
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
The following Information relates to a company that has two manufacturing departments. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Dept. X 4,000 $22,000 $ 3.00 Dept. Y 6,000 $20,400 $ 6.00 Total Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 10,eee $42,400 During the perlod, the company started and completed two Jobs--Job A and Job B. Data concerning those two Jobs follow: Job A Job B Direct materials $22,500 $8,400 $22,700 $8,000 2,500 1,250 Direct labor cost Molding machine-hours Assembly machine-hours 1,500 4,750 Requlred: 1. Assume the company uses a plantwide predetermined manufacturing overhead rate based on machine hours. a. Calculate the overhead rate. (Round your answer to 2 decimal places.) b. Calculate the amount of manufacturing overhead applied to Job A. (Do not round Intermedlate calculatlons.) c. Calculate the…
Assume (1) estimated direct labor hours used to calculate the predetermined overhead rate = 19,950, (2) the manufacturing overhead applied to production = $105,000, and (3) the total direct labor hours actually worked during the period = 21,000.What is the estimated total manufacturing overhead cost for the period?
Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead Actual machine-hours for the year The predetermined overhead rate for the recently completed year was closest to: Multiple Choice O O $6.73 per machine-hour $28.56 per machine-hour $29.05 per machine-hour O $22.32 per machine-hour 35,900 $ 6.73 per machine-hour $ 801,288 33,300
Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of the year, it estimated total manufacturing overhead costs to be $1,040,000, total number of direct labor hours to be 4,500, and total number of machine hours to be 24,000 hours. What was the predetermined overhead allocation rate? (Round your answer to the nearest cent.) A. $36.49 per direct labor hour B. $231.11 per machine hour C. $53.33 per direct labor hour D. $43.33 per machine hour

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