Steeler Towel Company estimates its overhead to be $490,000. It expects to have 140,000 direct labor hours costing $6,125,000 in labor and utilizing 14,000 machine hours. Calculate the predetermined overhead rate using: Round your answers to two decimal places. A. Direct labor hours $ per direct labor hour B. Direct labor dollars $ per direct labor dollar C. Machine hours per machine hour

Steeler Towel Company estimates its overhead to be $490,000. It expects to have 140,000 direct labor hours costing $6,125,000 in labor and utilizing 14,000 machine hours. Calculate the predetermined overhead rate using: Round your answers to two decimal places. A. Direct labor hours $ per direct labor hour B. Direct labor dollars $ per direct labor dollar C. Machine hours per machine hour

Name: eBookPrint ItemSteeler Towel Company estimates its overhead to be $49
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: eBookPrint ItemSteeler Towel Company estimates its overhead to be $490,000. It expects to have 140,000 direct labor hours costing $6,125,000 in labor and utilizing 14,000 machine hours. Calculatethe predetermined overhead rate using:Round your answe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At the beginning of a year, a company predicts total direct materials costs of $920,000 and total overhead costs of $1,170,000. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? Choose Numerator: Predetermined overhead rate I Choose Denominator: 1 I H = Rate Rate
Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: Total overhead $64,400 Cost drivers Number of labor hours 2,700 Number of machine hours 40,000 Required:1. Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 62 percent of the labor hours and Product B requires 38 percent. 2. Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 17,800 machine hours and Product B consumes 22,200.
Boarders estimates overhead will utilize 160,000 machine hours and cost P80,000. It takes 4 machine hours per unit, direct material cost of P5 per unit, and direct labor of P5 per unit. What is the cost of each unit produced?
Obi Wan Pierogi, Inc. has prepared the following estimates for the coming year:Estimated Direct Labor Hours: 80, 000 hoursEstimated Direct Labor Costs: $1,000,000Estimated Machine Hours: 60,000 hoursEstimated Manufacturing Overhead Costs: $600, 000Overhead is applied using machine hours. If Job #123 uses 9, 500 machine hours, how much total overhead will be applied to it ?$60,000 $10.00 $600,000 $95,000
If estimated annual factory overhead is $768,000; overhead is applied using direct labor hours; estimated annual direct labor hours are 240,000; actual March factory overhead is $68,800; and actual March direct labor hours are 21,000; then overhead is:
Peach, Inc., has identified the following overhead costs and cost drivers for next year: Overhead Item Setup costs.. Ordering costs Maintenance costs. Power Expected Cost $ 90,000 50,000 150,000 30,000 The following are two of the jobs completed during the year. Job 700 Direct materials. Direct labour Units completed. Direct labour hours Number of setups Number of orders. Machine hours. Kilowatt hours. The company's practical activity is 5,000 direct labour hours. $1,200 $900 250 40 2 Cost Driver Number of setups Number of orders.. Machine hours. Kilowatt hours. 10 50 60 Job 701 $600 $400 100 20 1 4 40 25 Expected Actual Transactions 400 4,000 25,000 75,000 Instructions: 1. Determine the unit cost for each job using direct labour hours to apply overhead. Round answers to two decimal places.
A work element takes 20 hours of labor of a technician. Currently, the technician makes $22.50 per hour. For this project, the overhead charges are 72% of the direct labor charges and 10% personal time was assumed for this work element. What is the grand total cost to complete this work element? (the total be the sum of the direct labor, overhead, and personal time cost)?
The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the beginning of the year the company expects fixed overhead costs to be $600,000 and variable costs to be $800,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. The actual fixed overhead costs are $700,000 and the actual variable overhead costs are $750,000. The actual machine hours during the year are 5,500 and the actual direct labor hours are 90,000.a. How much overhead is allocated?b. What is the over/underabsorbed overhead?
Please help me
A company manufactures a product with three models, each with different direct material costs and labour hour required and monthly production volume as follows: Labor rate is $10 per hour. The total manufacturing overhead is estimated to be $103,000 per month. Required: a) The manufacturing overhead is allocated to the three models based on labor hour. Compute the pre-determined overhead rate and the unit product cost of Model A. b) The company is considering to use the activity-based costing and gathers the following data related to the cost and activities: Model A Model B Model C Units of production 1,700 1,200 1,100 Labour hour required 0.3 0.6 0.7 Direct material costs 30 40 50 Expected Activity Activity Cost Pool Overhead Costs Model A Model B Model C Activity 1 $30,000 1,000 600 400…
Kingsley Products estimated that direct labor for the year would be 64,320 hours. The company also estimated that the fixed overhead cost for the year would be $160,800. They further estimated the variable overhead cost to be $4.00 per direct labor-hour. All overhead at Kingsley Products is applied on the basis of direct labor-hours. During the year, fixed overhead costs were exactly as planned ($160,800). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as $18,600.