Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixedmanufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense.Knowledge Check 02What is the predetermined overhead rate for the year?O $2 per machine hourO $4 per machine hour$5 per machine hourO $6 per machine hour

The objective of the question is to calculate the predetermined overhead rate for the year. The…

Answered: Precision Company estimates its…

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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The Winchester Company estimates that its overhead costs will amount to $523,600 and the company's manufacturing employees will work 77,000 direct labor hours during the current year. If actual overhead costs for the year amounted to $572,000 and actual labor hours amounted to 82,000, then overhead would be: Multiple Choice underapplied by $14,400. overapplied by $48,400. underapplied by $48,400. overapplied by $14,400.
The following data is available for Sunland Repair Shop for 2022: Repair technicians' wages $380000 Employee benefits 70000 Overhead Total 60000 $72.00. $108.00. $264.00. O $147.00. $510000 The desired profit margin is $45 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5000 labor hours will be worked in 2022. In January 2022, Sunland repairs a bicycle that uses parts of $180. Its material loading charge on this repair would be
Benson Corporation expects to incur indirect overhead costs of $98,000 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 January 5,300 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. Required A Required B 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. Complete this question by entering your answers in the tabs below. Required C February March 8,500 4,600 April 6,100 per unit 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. Predetermined overhead rate
4
Total Cost FormulaDavis Company has analyzed its overhead costs and derived a general formula for their behavior: $55,000 + $14 per direct labor hour employed. The company expects to use 50,000 direct labor hours during the next accounting period. What overhead rate per direct labor hour should be applied to jobs worked during the period? Round answer to two decimal places. Overhead rate per direct labor hour $_________
Please help me with show all calculation thanku
K Company estimates that overhead costs for the next year will be $4,000,000 for indirect labor and $970,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 140,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? Multiple Choice $0.03 per direct labor hour. O $0.14 per direct labor hour. $6.93 per direct labor hour. O $28.57 per direct labor hour. O $35.50 per direct labor hour.
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
Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Cost per Machine- Hour $ 4.25 Direct materials Direct labor Supplies Utilities Depreciation Insurance Fixed Cost per Month $ 36,800 $ 1,400 $ 16,700 $ 12,700 For example, utilities should be $1,400 per month plus $0.05 per machine-hour. The company expects to work 5,000 machine-hours in June. Note that the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for June. Wyckam Manufacturing Incorporated Planning Budget for Manufacturing Costs For the Month Ended June 30 Budgeted machine-hours Direct materials Direct labor Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0.30 $ 0.05 $ $ 36,000 16,000 1,500 1,650 16,700 1,200 73,050
please answer within 30 minutes.
K Company estimates that overhead costs for the next year will be $3,500,000 for indirect labor and $870,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 92,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? Multiple Choice $0.11 per direct labor hour. $9.46 per direct labor hour. $47.50 per direct labor hour. $0.02 per direct labor hour. $38.04 per direct labor hour.
Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Direct materials Direct labor Supplies Utilities Depreciation Insurance Fixed Cost per Month $ 42,100 $ 1,200 $ 14,600 $ 11,400 For example, utilities should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,000 machine- hours in June. Note that the company's direct labor is a fixed cost. Direct materials Direct labor Cost per Machine- Hour $ 5.50 Required: Prepare the company's planning budget for June. Wyckam Manufacturing Incorporated Planning Budget for Manufacturing Costs For the Month Ended June 30 Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0.30 $ 0.25

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