Silver stream Pumps, Inc. manufactures pumps for agricultural irrigation systems. For the year, management estimated that the total manufacturing overhead would be $1,200,000. Management decided to use direct labor hours to apply manufacturing overhead and budgeted 50,000 direct labor hours. The balance in over- or under-applied overhead is deemed to be small. The following information was compiled before an adjustment had been made to close Manufacturing Overhead Control: Information Raw Materials Inventory Work in Process Inventory Amount ($) 250,000 210,000 Finished Goods Inventory 520,000 Actual Direct Labor Hours Used 55,000 Actual Overhead Incurred 1,150,000 For the year, manufacturing overhead was: A. $150,000 under-applied B. $150,000 over-applied C. $170,000 over-applied D. $170,000 under-applied

Silver stream Pumps, Inc. manufactures pumps for agricultural irrigation systems. For the year, management estimated that the total manufacturing overhead would be $1,200,000. Management decided to use direct labor hours to apply manufacturing overhead and budgeted 50,000 direct labor hours. The balance in over- or under-applied overhead is deemed to be small. The following information was compiled before an adjustment had been made to close Manufacturing Overhead Control: Information Raw Materials Inventory Work in Process Inventory Amount ($) 250,000 210,000 Finished Goods Inventory 520,000 Actual Direct Labor Hours Used 55,000 Actual Overhead Incurred 1,150,000 For the year, manufacturing overhead was: A. $150,000 under-applied B. $150,000 over-applied C. $170,000 over-applied D. $170,000 under-applied

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...

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When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.
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The manager at Screaming Trees has been trying to calculate the portion of the company's overhead expenses that is fixed and the portion that is variable. Over the past twelve months, the number of yards of mulch processed was highest in July, when the total monthly overhead costs totaled $32,000 for 37,000 yards of mulch processed. The lowest number of yards of mulch processed in the last twelve months occurred in October, when total overhead costs were $26,000 for 26,000 yards of mulch processed. What was the variable cost per yard? OA. $1.00 O B. $1.83 O C. $0.55 O D. $0.86
Crane Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1,810,000 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $111,000, and 1819C, with total direct labour charges of $390,800. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued for 1768B amounted to $229,000, and for 1819C they amounted to $420,200. 905,000 Total charges to the Manufacturing Overhead Control account for the year were $902,500, and direct labour charges made to all jobs amounted to $1,582,600, representing 247,800 direct labour hours. There were no beginning inventories. In addition to…
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Can you please give correct answer for this accounting question?
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $235,400 Actual manufacturing overhead cost $244,600 Estimated machine hours 20,100 Actual machine hours 23,200 The estimates were made as of the beginning of the year, while the actual results were for the entire year.The amount of manufacturing overhead allocated for the year based on machine hours would have been (Round intermediary calculations to the nearest cent.) Question 31 options: $211,916. $244,600. $271,672. $235,400.
The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30 Materials used in production (including $59,600 of indirect materials) $644,000 Direct labor (including $89,400 maintenance salaries) 596,300 Factory overhead: Supervisor salaries 548,600 Heat, light, and power 149,100 Sales salaries 369,700 Promotional expenses 333,900 Insurance and property taxes—plant 161,000 Insurance and property taxes—corporate offices 232,600 Depreciation—plant and equipment 131,200 Depreciation—corporate offices 95,400 Total $3,261,800 Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30 $- Select - - Select - Factory overhead: $- Select - - Select - - Select - - Select - - Select - - Select - - Select - Total…
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead. Fixed Variable Total Indirect materials $ 5,800 $ 10,800 $ 16,600 Indirect labor 3,400 17,400 20,800 Supervision 11,800 4,400 16,200 Depreciation 38,800 6,800 45,600 Maintenance 18,800 23,800 42,600 Total $ 78,600 $ 63,200 $ 141,800 Direct materials for the month amounted to $111,500. Direct labor for the month was $206,500. During the month, 12,500 units were produced. Required: a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month.b. Determine the cost per unit of production for the…