hello teacher please solve questions PEL Limited has been using an overhead rate of Rs.5.60 permachine hour. During the year, overheads of Rs. 275,000 wereincurred and 48,000 machine hours were worked. Therefore,overheads were:A. Under-applied by Rs.7,600B. Over-applied by Rs. 6,200C. Under-applied by Rs. 6,200D. Over-applied by Rs. 7,600

Step 1: Definition of OverheadOverhead refers to the indirect costs associated with running a…

Answered: PEL Limited has been using an overhead…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...

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Marquis Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are direct labor cost $500,000, direct labor hours 50,000, and machine hours 100,000. Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, eg. 10.50% or 10.50.) A Overhead rate per direct labor cost Overhead rate per direct labor hour Overhead rate per machine hour LA %
Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate. а. 4.08 b. 8.08 С. 5.08 d. 2.08 е. None of the given answers
A company expected its annual overhead costs to be $2700000 and direct labor costs to be $1500000. Actual overhead was $2650000, and actual labor costs totaled $1600000. How much is the company’s predetermined overhead rate to the nearest cent? $1.69 $1.80 $1.66 $1.77
During the year, 3,600 units were produced, 14,500 hours were worked, and the actual manufacturing overhead was $49,000. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours. (a) Calculate the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, e.g. 15.25.) Variable manufacturing overhead $ Fixed manufacturing overhead $ Total manufacturing overhead $ Rate 2.25
Marquis Company estimates that annual manufacturing overhead costs will be $894,600. Estimated annual operating activity bases are direct labor cost $497,000, direct labor hours 49,700, and machine hours 99,400.Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50% or 10.50.) Overhead rate per direct labor cost enter percentages rounded to 2 decimal places % Overhead rate per direct labor hour $enter a dollar amount rounded to 2 decimal places Overhead rate per machine hour
Stuart Corporation expects to incur indirect overhead costs of $102,000 per month and direct manufacturing costs of $13 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. b. Allocate overhead costs to each month using the overhead rate computed in Requirement a. c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Required A Required B Complete this question by entering your answers in the tabs below. January February March 4,500 8,200 5,000 Required C Predetermined overhead rate $ Answer is complete but not entirely correct. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. April 6,300 4 X per unit Required A Required B >
Richards Manufacturing estimates the following activity for the coming year: ⚫ expected production 20 000 units ⚫ expected direct labour hours 20 000 hours ⚫ expected manufacturing overhead $200 000. Manufacturing overhead is allocated on the basis of direct labour hours. At the end of the financial period, the following information was collected: ⚫ direct labour hours 18 000 hours ⚫ manufacturing overhead $240 000. a. Calculate the predetermined manufacturing overhead rate at the beginning of the year. b. Calculate the actual manufacturing overhead rate for the year.
A company uses an overhead absorption rate of £6·50 per labour hour, based on 40,000 budgeted labour hours for the period. During the same period the actual total overhead expenditure amounted to £265,442 and 42,000 labour hours were recorded on actual production.By how much was the total overhead under or over absorbed for the period?a) Under absorbed by £7,558 b) Under absorbed by £5,442 c) Over absorbed by £7,558 d) Over absorbed by £5,442
Ridd industries estimate that Annual manufacturing overhead cost
Assume the following: • The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The actual quantity of labor hours worked during the period was 43,000 hours. The company produced 15,000 units of finished goods during the period. • The total actual variable manufacturing overhead cost for the period was $63,000. • What is the variable overhead rate variance? Multiple Choice ○ $1,500 F ○ $1,500 U ○ $4,500 U $4,500 F
If annual overhead costs are expected to be $1,000,000 and 200,000 total labor hours are anticipated (80% direct, 20% indirect), the overhead rate based on direct labor hours is: a. $6.25 b. $5.00 c. $25.00 d. $4.00
A company estimates its manufacturing overhead will be $630,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 72,000 $______ per direct labor hour B. Budgeted direct labor expense: $1,800,000 $_____ per direct labor dollar C. Estimated machine hours: 120,000 $_____ per machine hour

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