Pel Limited has been using an overhead rate of Rs. 5.60 per machine hour... 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: Define OverheadThe charges of the business that are not in relation to the manufacturing…

Answered: PEL Limited has been using an overhead…

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

Assume that actual overhead is $613,000 in a given year, the overhead rate is $10 per unit, 60,000units were sold, and 59,000 units were produced. For the end of the year, is overhead underapplied oroverapplied? By how much?
Amanzi Company applies Overhead based on Direct Labour hours. At The beginning of the year, Amanzi estimates Overhead to be R700 000, Machine hours to be R200 000 and Direct labour hours to be R35000. During the year Amanzi has R5000 Direct labour hours and 10 000 Machine hoursWhat is the Predetermined Overhead rate?a. R15.00 per machine hourb. R14.00 per direct labour hourc. R20.00 per direct labor hourd. R18.00 per machine houre. None of these are correct.
XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During the year it incurred P345,000 dollars of actual overhead, but it planned to incur P360,000 of overhead. The company applied P363,000 of overhead during the year. How much is the standard overhead cost and the actual overhead rate?
WYENNE Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During the year it incurred P345,000 dollars of actual overhead, but it planned to incur P360,000 of overhead. The company applied P363,000 of overhead during the year. how much is the standard overhead rate?
Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead. (a) Calculate the overhead application rate for the year.(b) What is the amount of applied overhead for the year?(c) What is the amount of under or overapplied overhead for the year? Indicate whether it is over or underapplied.
XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During the year it incurred P345,000 dollars of actual overhead, but it planned to incur P360,000 of overhead. The company applied P363,000 of overhead during the year. How many actual direct labor hours did the company incur?
Overhead is calculated by Amanzi Company based on Direct Labor hours. Amanzi forecasts Overhead to be R700 000, Machine hours to be R200 000, and Direct labour hours to be R35000 at the start of the year. Amanzi has 5000 direct labour hours and 10,000 machine hours each year. What is the rate of predetermined overhead? a. R15.00 per hour per machine b. R14.00 per hour of direct labour c. R20.00 per hour of direct work d. R18.00 per hour per machine g. None of them are valid options.
S Ltd absorbs overheads based on units produced. In one period 110,000 units were produced and the actual overheads were £500,000. Overheads were £50,000 over-absorbed in the period. What is the overhead absorption rate was per unit? a. 11,000 b. £6 c. 55000 d. £5
Shaq’s Cannery, Inc. estimated its factory overhead at ₱510,000 for the year, based on the normal capacity of 100,000 direct labor hours. Standard direct labor hours for the year totaled 105,000, while the factory overhead control account at the end of the year showed a balance of ₱540,000. How much was the over/underapplied factory overhead for the year? Show solution Group of answer choices ₱4,500 underapplied ₱30,000 overapplied ₱4,500 overapplied ₱30,000 underapplied
Winston Company estimates that the factory overhead for the following year will be $675,400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 30,700 hours. The total machine hours for the year were 54,100. The actual facto overhead for the year was $1,183,000. a. Determine the total factory overhead amount applied. Round to the nearest dollar. b. Compute the over- or underapplied amount for the year. Enter the amount as a positive number. C. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank. %24
John Corporation bases its overhead rate on direct labour hours. The expected direct labour hours at the beginning of the year were 21,800 hours, and the total estimated manufacturing overhead was $497,040. Actual direct labour hours for the year were 21,500 hours at the end of the year, and actual manufacturing overhead was $492,040. At the conclusion of the year, the following expenses were incurred: A. $1,840 underapplied B. $6,840 overapplied C. $6,840 underapplied D. $1,840 overapplied
Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $770,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 17,000 hours and 5,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.) A. $29.41 per labor hour B. $1.54 per labor hour C. $154.00 per machine hour D. $100.00 per machine hour

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS