**Shire Company: Calculating the Predetermined Overhead Rate**Shire Company’s predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $612,000 of overhead costs and $510,000 of direct labor cost for the period. During March, Shire began and completed Job 56.### Questions:1. What is the predetermined overhead rate for this period?2. Use the information on the following job cost sheet to determine the total cost of Job 56.### Instructions:Complete this question by entering your answers in the tabs below.**Tabs:**- Required 1- Required 2### Calculation of the Predetermined Overhead Rate:**Overhead Rate Table:**| Numerator: | / | Denominator: | = | Overhead Rate ||---------------------|---|---------------------|---|----------------------|| (Estimated Overhead Costs) | / | (Estimated Direct Labor Cost) | = | (Calculated Rate) |**Numerator:** $612,000 **Denominator:** $510,000 **Formulas:**- Overhead Rate = Estimated Overhead Costs / Estimated Direct Labor Cost**Buttons:**- `< Required 1`- `Required 2 >`

PREDETERMINED OVERHEAD RATE : ESTIMATED OVERHEAD COST / ESTIMATED ACTIVITY BASE

Answered: Shire Company's predetermined overhead…

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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Job number S-1000 had the following data: Direct Labor hours used: Direct Materials used: Hourly wage rate: 32 $750 $45/hr. Overhead allocation rate: $15/direct labor hr. Assuming this was the only job completed this month, what was the total cost of Job S-1000?
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $23,200, direct labor $13,920, and manufacturing overhead $18,560. As of January 1, Job 49 had been completed at a cost of $104,400 and was part of finished goods inventory. There was a $17,400 balance in the Raw Materials Inventory account. During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $141,520 and $183,280, respectively. The following additional events occurred during the month. 1. 2. 3. 4. Job No. 50 Purchased additional raw materials of $104,400 on account. Incurred factory labor costs of $81,200. Of this amount $18,560 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect…
Bernard Incorporated uses a job-order costing system and a predetermined overhead rate based on direct labor hours.At the beginning of the year, the company estimated manufacturing overhead for the year would be $1,184,000 and direct labor hours would be 80,000 hours.The following information pertains to September of the current year: Job X10 Job X11 Job X12 Work in Process, Sept. 1 $14,000 $18,000 $24,000 March production activity: Materials used $12,800 $8,200 $9,700 Direct labour used $3,400 $4,600 $6,500 Machine hours 390 620 790 Labour hours 1,050 1,170 1,180 Required (round answers to 2 decimal points) At the end of the September Jobs X10 and Job X11 were completed, and Job X10 was sold and delivered to a customer - show the ending balances of the Work in Process and Finished Goods inventory accounts (assume no beginning Finished Goods inventory). If actual manufacturing overhead…
Assume it is the beginning of the month, using the estimates and a job-order costing system, what price would you recommend Lina quote for each of the above two jobs to ensure profitability in the long term? 2. Assume it is the end of the month, determine the amount of under- or over-applied overhead and recommend to Lina how the amount should be accounted for. 3. Prepare a schedule of cost of goods manufactured for the month - these were the only two jobs started and sold (zero beginning and ending work-in-process inventory). Assume that actual materials used and the labour rate/hours are the same as estimated. Hint: refer to Exhibit 5.11 on page 213 of text for suggested format.
At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information: Job Job 765 Job 766 Job 765 Job 766 Direct Materials Job 765 $8,960 15,048 Job 766 Direct Labor $2,688 4,752 Machine Hours Job 765 produced 192 units, and Job 766 consisted of 440 units. Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $147 per hour. a. Determine the balance on the job cost sheets for each job. 32 88 $ b. Determine the cost per unit at the end of April. Round your answers to the nearest cent.

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