Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20xt: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. Direct Material Direct Labor Machine Hours $21,000 $35,000 22,000 65,000 8,800 64 1,200 65 700 66 2,000 44,000 15,000 67 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($32,000), indirect labor ($60,100). indirect materials used ($5.100), and other factory costs ($139,600). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,900 for the firm. Required: 1. Determine the company's predetermined overhead application rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per machine hour
Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20xt: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. Direct Material Direct Labor Machine Hours $21,000 $35,000 22,000 65,000 8,800 64 1,200 65 700 66 2,000 44,000 15,000 67 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($32,000), indirect labor ($60,100). indirect materials used ($5.100), and other factory costs ($139,600). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,900 for the firm. Required: 1. Determine the company's predetermined overhead application rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per machine hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required information
[The following information applies to the questions displayed below.]
Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20xt: job no. 64 ($84,100)
and job no. 65 ($53,500). The following information is available:
a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted
overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively.
b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine
hours consumed were as follows:
Job No.
Direct Material
Direct Labor
Machine Hours
64
$21,000
$35,000
22,000
65,000
8,800
1,200
65
700
66
44,000
15,000
2,000
500
67
c. Manufacturing overhead during the first quarter included charges for depreciation ($32,000), indirect labor ($60,100).
indirect materials used ($5,100), and other factory costs ($139,600).
d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,900 for
the firm.
Required:
1. Determine the company's predetermined overhead application rate. (Round your answer to 2 decimal places.)
Predetermined overhead rate
per machine hour](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2cde54e1-f07f-4a23-aee5-395f93701b56%2F5dad2442-a7a8-4c6b-bea4-b002a14c04e3%2Frx7bt79_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20xt: job no. 64 ($84,100)
and job no. 65 ($53,500). The following information is available:
a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted
overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively.
b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine
hours consumed were as follows:
Job No.
Direct Material
Direct Labor
Machine Hours
64
$21,000
$35,000
22,000
65,000
8,800
1,200
65
700
66
44,000
15,000
2,000
500
67
c. Manufacturing overhead during the first quarter included charges for depreciation ($32,000), indirect labor ($60,100).
indirect materials used ($5,100), and other factory costs ($139,600).
d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,900 for
the firm.
Required:
1. Determine the company's predetermined overhead application rate. (Round your answer to 2 decimal places.)
Predetermined overhead rate
per machine hour
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