QS 15-18 (Algo) Computing and recording over- or underappliedoverhead LO P4A company applies overhead at a rate of 170% of direct labor cost. Actual overhead costfor the current period is $1,081,900, and direct labor cost is $627,000.1. Compute the under- or overapplied overhead.2. Prepare the journal entry to close over- or underapplied overhead to Cost of GoodsSold.Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the under- or overapplied overhead.

The first step is to calculate the applied overhead. The applied overhead is the amount of overhead…

Answered: QS 15-18 (Algo) Computing and recording…

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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Calculate the predetermined overhead rate based on direct labor hours
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Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $38,900. Required: 1. Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number.fill in the blank 1 % of direct labor cost 2. Calculate the overhead applied to production in December.$fill in the blank 2
compute overhead applied and the under-or overapplication of overhead for the period: Estimated annual overhead cost OMR 1,600,000 Actual annual overhead cost OMR 1,575,000 Estimated machine hours 400,000 Actual machine hours 390,000 compute overhead applied and the under-or overapplication of overhead for the period: Select one: a. OMR 1,600,000 applied and OMR 15,000 overapplied O b. OMR 1,560,000 applied and OMR 15,000 overapplied Oc OMR 1,560,000 applied and OMR 15,000 underapplied O d. None of the answers are correct e. OMR 1,575,000 applied and neither under-nor overapplied
PROBLEM I ABC Company's total overhead costs at various levels of activity are presented below: March April May June. Machine Hours Total Overhead Costs $216,800 $194,000 $239,600 $262,400 60,000 50,000 70,000 80,000 Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. At the 50,000 machine-hour level of activity these costs are: Utilities (V). Supervisory salaries (F). Maintenance (M).. Total overhead cost V = Variable; F = Fixed; M = Mixed The company wants to break down the maintenance cost into its basic variable and fixed cost elements. Required: $ 54,000 62,000 78.000 $194.000 a. Estimate the maintenance cost for June. b. Use the high-low method to estimate the cost formula for maintenance cost. c. Estimate the total overhead cost at an activity level of 55,000 machine hours.
Abc corporation allocates overhead solve this question
Nova Company's total overhead cost at various levels of activity are presented below Total Overhead Machine- Month Hours Cost April May June 52,000 42,000 62,000 72,000 $203,860 $181,060 $226,660 $249,460 July Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost S 50,400 67,000 63.660 181,060 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements Required: 1. Estimate how much of the $249,460 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $249,460 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Maintenance cost in July 2. Using the high-low method,…

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