Determine and Use Consulting RateOxford Consulting, Inc., expects the following costs and expenses during the coming year:Direct labor (@ $20/hr.) $1,344,000Sales commissions288,0001,512,000Overheada. Compute a predetermined overhead rate applied on the basis of direct labor hours.Round to two decimal places if applicable.$0b. Prepare a general journal entry to apply overhead during an interim period when 14,000 direct labor hours were worked.General JournalDescriptionDebit◆♦0000c. What amount of overhead would be assigned to Job 325, to which $1,216 in direct labor had been charged?Round to two decimal places, if applicable.$0CreditPlease answer all parts of the question.

Name: Determine and Use Consulting RateOxford Consulting, Inc., expects the
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Description: Determine and Use Consulting RateOxford Consulting, Inc., expects the following costs and expenses during the coming year:Direct labor (@ $20/hr.) $1,344,000Sales commissions288,0001,512,000Overheada. Compute a predetermined overhead rate applied on

Estimated direct labor hours = Estimated direct labor cost / Direct labor rate per hourPredetermined…

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Oxford Consulting, Inc., expects the following costs and expenses during the coming year: Direct labor (@ $20/hr.) $1,344,000 Sales commissions Overhead a. Compute a predetermined overhead rate applied on the basis of direct labor hours. Round to two decimal places if applicable. $0 288,000 1,512,000 b. Prepare a general journal entry to apply overhead during an interim period when 14,000 direct labor hours were worked General Journal Description Debit ◆ 0 0 0 0 c. What amount of overhead would be assigned to Job 325, to which $1,216 in direct labor had been charged? Round to two decimal places, if applicable. $0 Credit Please answer all parts of the question.

Oxford Consulting, Inc., expects the following costs and expenses during the coming year: Direct labor (@ $20/hr.) $1,344,000 Sales commissions Overhead a. Compute a predetermined overhead rate applied on the basis of direct labor hours. Round to two decimal places if applicable. $0 288,000 1,512,000 b. Prepare a general journal entry to apply overhead during an interim period when 14,000 direct labor hours were worked General Journal Description Debit ◆ 0 0 0 0 c. What amount of overhead would be assigned to Job 325, to which $1,216 in direct labor had been charged? Round to two decimal places, if applicable. $0 Credit Please answer all parts of the question.

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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ABC Inc. computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 25,000 direct labor hours would be required for the period's estimated level of production. The company also estimated $520,000 of fixed manufacturing cost for the coming period and variable manufacturing overhead of $4 per direct labor-hour. ABC's actual manufacturing overhead cost for the year was $671,925 and its actual total direct labor was 25,500 hours. Compute the company's plantwidew predetermined overhead rate for the year.
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