Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It furtherestimates that direct labor costs will amount to $750,000. During March, Linzee worked on fourjobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were$1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead isapplied to jobs based on direct labor costs using predetermined rates.Required:a. How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304?b. What was the over- or underapplied manufacturing overhead for Year 1?

Name: Linzee Liners estimates that its manufacturing overhead will be $1,72
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It furtherestimates that direct labor costs will amount to $750,000. During March, Linzee worked on fourjobs with actual direct labor costs of $35,000 for Job 0301

Predetermined OH :— it is the Part of Batch Costing. The predetermined overhead rate is set at the…

Answered: Required: a. How much overhead was…

Business

Accounting

Required: a. How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? b. What was the over- or underapplied manufacturing overhead for Year 1?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: omplete the job cost sheet for Job Alpha. (Round your intermediate calculations to 2 decimal…

A: Direct Materials Cost: This represents the cost of raw materials directly used in Job…

Q: Blue Mountain Company applies overhead on the basis of machine hours. The following data was for the…

A: Overhead are also known an operating expenses not directly involve in producing a product or…

Q: For each of the following items, indicate whether it would appear on a materials requisition form…

A: A material requisition form lists the items to be picked from inventory and used in the production…

Q: Concord Corporation applies overhead on the basis of machine hours. Given the following data,…

A: Formula: Predetermined overhead rate = Estimated annual overhead cost / Estimated machine hours

Q: COTB MC Qu. 2-33 (Algo) Assume (1) a company's plantwide predetermined... Assume ( a company's…

A: Predetermined Overhead Rate is the rate used to allocate manufacturing overhead cost to cost object…

Q: Calculate the overhead cost assigned to the job if the company used the overhead rates developed in…

A: Total overhead cost (step down method) $84,522Total overhead cost (Direct method)…

Q: Transfer prices can be based on any of the following methods except Multiple Choice variable and…

A: Transfer price represents the cost charged by one department or unit of the corporation from the…

Q: the following statements about predetermined overhead rates are correct, EXCEPT: O a. based on…

A: Overhead are those expenses of the entity/firm which it made after getting the prime cost of the…

Q: 4. If Job P includes 20 units, what is its unit product cost? 5. What is the total manufacturing…

A: Manufacturing overhead are the total indirect costs that occured during production of the product.…

Q: 3. What were the company's predetermined overhead rates in the Molding Department and the…

A: Department Plantwide Overhead Rate The department predetermined overhead rate is set at the…

Q: Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is…

A: Total manufacturing cost is the sum of direct material, direct labor and manufacturing overhead…

Q: Question: If direct labor for the month is $40,000 overhead is applied based on direct labor, annual…

A: Step 1: Debit Work-in-Process Inventory $40,000; credit Payroll $40,000 DrCr The Journal entry will…

Q: 4. Assume that the company allocates any underapplied or overapplied overhead to Work in Pro- cess,…

A: Since you have asked only requirement 4, I am answering it alone. If you want any specific question…

Q: In a Chart, calculate the revised overhead allocation based on equipment hours the resulting job…

A: Revised Overhead allocation rate = Total CostTotal Equipment Hours

Q: predetermined overhead rate is calculated by dividing actual overhead cost by the actual amount of a…

A: The overhead is applied to the product on the basis of predetermined overhead rate. The…

Q: What is an overhead application rate? Question 11 options: Average cost of actual direct labor…

A: Factory overheads are defined as indirect costs that are not directly related to the production…

Q: For the year ended December 31, 2022, the job cost sheets of Carla Vista Company contained the…

A: The inventory known as "work in process" (WIP) is a term that is used to refer to materials that are…

Q: 10. How much manufacturing gverhead was applied from the Molding Department to Job P and how much…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Manufacturing overhead was estimated to be OMR 400,000 for the year along with estimated 20,000…

A: The predetermined overhead rate is calculated as total estimated manufacturing overhead cost divided…

Q: What is the journal entry to record the labor costs incurred during the year?

A: Process Costing: Process costing is a method of cost accounting, which is used when the production…

Q: O'Leary Corporation manufactures special purpose portable structures (huts, mobile of- fices, and so…

A: Pre determined Overhead rate: A predetermined overhead rate is an allocation rate to apply the…

Q: Hultquist Corporation has two manufacturing departments--Forming at the beginning of the period to…

A: Overhead recovery rate can be computed by dividing the Total Estimated Overhead by the Estimated…

Q: If a company applies overhead to jobs on the basis of a predetermined overhead rate, a credit…

A: Formula: Predetermined manufacturing overhead rate = Estimated manufacturing overhead / estimated…

Q: Carver Company uses a plantwide overhead rate based on direct labor costs. Suppose that Carver…

A: The job order costing technique is used by businesses that produce products to the exact…

Q: Required 1-a. Determine the predetermined overhead rate for the year. 1-b. Determine the total…

A: Overhead Cost = Overhead cost is that cost which done to operate a Business . There are different…

Q: Manufacturing overhead consists of all of the following except

A: Manufacturing overhead, also known as factory overhead, refers to indirect manufacturing costs that…

Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further
estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four
jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job
0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were
$1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is
applied to jobs based on direct labor costs using predetermined rates.
Required:
a. How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304?
b. What was the over- or underapplied manufacturing overhead for Year 1?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Coronado Company applies overhead on the basis of machine hours. Given the following data, what is the overhead applied and the under-or overapplication of overhead for the period? Estimated annual overhead cost Actual annual overhead cost Estimated machine hours Actual machine hours $3100000 $2940000 350000 280000 O $2480000 applied and $460000 overapplied O $2940000 applied and neither under- nor overapplied O $2480000 applied and $460000 underapplied O $3100000 applied and $460000 overapplied
17.) In a job order system, the ending Work in Process account balance should equal the sum of: A.) the Pokémon from all nine regions B.) all manufacturing costs for the period dloun C.) the open job cost sheets D.) the over or under-applied balance in Manufacturing Overhead for the period
! Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Number of machine hours Number of design hours. Number of batches. Cost Driver $416,700 Number of machine hours 93,100 Number of design hours 73,338 Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Estimated Cost Driver 92,600 9,500 510 Product A Product B Product C 36,000 46,000 10,600 3,800 2,100 3,600 285 50 175
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
ple predetermined overhead rates The job cost sheet records which of the following. costs? (check all that apply) 03:10 20:38 Actual direct material Estimated direct material Actual direct labor Estimated direct labor Actual overhead Estimated overhead SUBMIT 10 + > CC " F
Job XXX required 260 direct labour hours of which 220 hours were incurred during the current accounting period. The predetermined overhead cost rate is £7.50 per direct labour hour. How much overhead should be applied to Job XXX during the current accounting period? a. £1,650 b. £366 c. £1,950 d. £915
All the following statements about predetermined overhead rates are correct, EXCEPT: a. calculated at the beginning of the accounting period once the actual amount of manufacturing overhead is known. O b. calculated based on estimated total manufacturing overhead costs O c. All the given answers are correct. O d. by dividing total estimated manufacturing overhead cost by actual units of the allocation base. O e. calculated first and then multiplied by total actual units of the allocation base to compute the applied manufacturing overhead costs.
1. With ABC, overhead costs are assigned to each product based on ________. Group of answer choices machine hours per product price of the product a predetermined overhead rate for a single cost driver the proportion of that product’s use of the cost driver
Jackson Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required. (Click the icon to view the costs.) Requirements 1. 2. 3. Compute Jackson's predetermined overhead allocation rate. Prepare the journal entry to allocate manufacturing overhead. Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. Is manufacturing overhead underallocated or overallocated? By how much? 4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease Cost of Goods Sold? Print Allocated overhead to WIP Done - X Data table At the beginning of 2024, the company expected to incur the following: Manufacturing overhead costs Direct labor costs $880,000 1,540,000 Machine hours 80,000 hours At the end of 2024, the company had actually incurred: Direct labor costs Depreciation on manufacturing plant and equipment Property taxes on plant…
Predetermined overhead rates are calculated: a. first and then multiplied by total actual units of the allocation base to compute the applied manufacturing overhead costs. b. based on actual total manufacturing overhead costs C. by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. d. none of the given answers is correct. e. at the end of the accounting period once the actual amount of manufacturing overhead is known.
Factory Overhead Rates and Account Balances Prostheses Industries operates two factories. The manufacturing operations of Factory 1 are m e intensive, while the manufacturing operations of Factory 2 are labor intensive. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Estimated factory overhead cost for fiscal year beginning August 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for August Actual direct labor hours for August Actual machine hours for August 1,730 a. Determine the factory overhead rate for Factory 1. Round your answer to the nearest cent. per machine hour $887,200 Factory 2 22,180 $70,930 $1,049,400 15,900 $90,600 1,430 b. Determine the factory overhead rate for Factory 2. Round your answer to the nearest cent. per direct labor…
In process costing, costs are accounted for by a. year. b. process. c. job. d. batch