Q3: Bassam Company uses machine hours as the allocation basein the machining department and direct labor hours as allocationbase in the Assembly department. At the beginning of the year,the company made the following estimates:Estimated dataDirect labor hoursMachine hoursTotal fixed manufacturing overhead costMachining deptt Assembly deptt8000250004000050002500003600000Variable manufacturing overhead per machine hourVariable manufacturing overhead per direct laborhour$2.5$4.25Required:•Calculate predetermined overhead rate in Machiningand Assembly departments.• How much overhead cost would be applied to Job M,assuming that it used five machine hours in themachining department and 10 direct labor hours in theassembly dept.

The objective of the question is to calculate the predetermined overhead rate for both the Machining…

Answered: Q3: Bassam Company uses machine hours…

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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4. UFC Inc. applies factory overhead as follows: Department Per Machine HourFabricating P10Spreading P20Packaging P30Actual machine hours are:Fabricating – 2,000 hoursSpreading – 1,500 hoursPackaging – 3,000 hoursThe following additional data are provided:a. The actual factory overhead expense for the period is P100,000b. The ending balances of the inventories and cost of goods sold after the application of overhead are asfollows: Raw materials 200,000Work in process 100,000Finished goods 400,000Cost of goods sold 500,000 c. The over/(under) applied overhead during the period is considered material if at least 30% of actualfactory overhead, What is the adjusted cost of goods sold after closing the under/over application of factory overhead?A. 460,000B. 480,000C. 540,000D. 483,333
Help [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. Th company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 24,000 $ 760,000 $ 3.00 Fabrication 33,000 $ 220,000 $ 2.00 Total 57,000 $ 980,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs- Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost Machine-hours Total $ 690,000 $ 380,000 24,000 Molding $ 370,000 $ 200,000 15,000 Fabrication $ 320,000 $ 180,000 9,000 Molding $ 200,000 $ 100,000 9,000 $ 200,000 $ 400,000 $ 260,000 24,000 $ 360,000 33,000 Fabrication Total…
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The following information was gathered for the Greensprings Corporation for the most recent year. Manufacturing overhead is allocated using machine hours, Actual machine hours Allocated manufacturing overhead. Estimated manufacturing overhead costs Actual manufacturing overhead costs By how much is manufacturing overhead over or underallocated? A. $82,000 overallocated B. $82,000 underallocated OC. $8,000 underallocated OD. $8,000 overallocated 139,000 $1,130,000 $1,056,000 $1,138,000
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400
I need the answer to required 2.
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
Q) If July's estimated machine-hours are 4,500, calculate the total estimated operating costs of the Machining Department using the cost function in (a)?
Ee.9.
Practice Example 1: White Company has two departments, Cutting and Finishing. The company uses a job-order cost system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor cost. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Manufacturing overhead cost Direct labour cost Cutting 6,000 48,000 Rs360,000 Rs50,000 Finishing 30,000 5,000 Rs486,000 Rs270,000 Required: 1. Compute the predetermined overhead rate to be used in each department. 2. Assume that the overhead rates that you computed in (1) above are in effect. The job cost sheet for job 203, which was started and completed during the year, showed the following: Cutting 6 80 Rs500 Rs70 Department Finishing 20 4 Rs310 Rs150 Direct labor-hours Machine-hours Materials requisitioned Direct labor cost Compute the total overhead cost applied to Job…
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