**Swifty Company Overhead Application Analysis**Swifty Company applies overhead on the basis of machine hours. Given the following data, the task is to determine the overhead applied and the under- or overapplication of overhead for the period.**Data Provided:**1. **Estimated annual overhead cost:** $1,660,0002. **Actual annual overhead cost:** $1,555,0003. **Estimated machine hours:** 320,0004. **Actual machine hours:** 100,000**Question:**Based on the above data, what is the overhead applied and the corresponding under- or overapplication of overhead for the period?**Options:**- $1,660,000 applied and $1,036,250 overapplied- $1,555,000 applied and neither under- nor overapplied- $518,750 applied and $1,036,250 underapplied- $518,750 applied and $1,036,250 overapplied**Analysis:**First, we need to calculate the overhead rate per machine hour:\[ \text{Overhead rate per machine hour} = \frac{\text{Estimated annual overhead cost}}{\text{Estimated machine hours}} \]\[ \text{Overhead rate per machine hour} = \frac{1,660,000}{320,000} \]\[ \text{Overhead rate per machine hour} = $5.1875 \]Next, apply this rate to the actual machine hours to determine the applied overhead:\[ \text{Overhead applied} = \text{Overhead rate per machine hour} \times \text{Actual machine hours} \]\[ \text{Overhead applied} = 5.1875 \times 100,000 \]\[ \text{Overhead applied} = $518,750 \]To find the under- or overapplication of overhead, compare the applied overhead to the actual overhead cost:\[ \text{Difference (under- or overapplied)} = \text{Applied overhead} - \text{Actual annual overhead cost} \]\[ \text{Difference} = 518,750 - 1,555,000 \]\[ \text{Difference} = -$1,036,250 \]Since the difference is negative, this indicates underapplied overhead.**Conclusion:**The correct response is:- $518,

Name: **Swifty Company Overhead Application Analysis**Swifty Company applie
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: **Swifty Company Overhead Application Analysis**Swifty Company applies overhead on the basis of machine hours. Given the following data, the task is to determine the overhead applied and the under- or overapplication of overhead for the period.**Dat

Business

Accounting

Swifty 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 $1660000 $1555000 320000 100000 O $1660000 applied and $1036250 overapplied O $1555000 applied and neither under-nor overapplied $518750 applied and $1036250 underapplied O $518750 applied and $1036250 overapplied

Swifty 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 $1660000 $1555000 320000 100000 O $1660000 applied and $1036250 overapplied O $1555000 applied and neither under-nor overapplied $518750 applied and $1036250 underapplied O $518750 applied and $1036250 overapplied

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

Account balances from Boilermakers Company are as follows: Manufacturing Overhead Work in Process Finished Goods Cost of Goods Sold $240,000 underapplied 100,000 300,000 800,000 Under- or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances), Cost of Goods Sold after adjustment would have a balance of Oa. $1,440,000. Ob. $640,000. Oc. $960,000. Od. $1,040,000.
All information included
QUESTION: 1. IN THE COST RECONCILIATION REPORT UNDER THE FIFO METHOD, THE COSTS TO BE ACCOUNTED FOR EQUALS THE COST OF BEGINNING WORK IN PROCESS INVENTORY PLUS THE COST OF UNITS TRANSFERRED OUT. TRUE OR FALSE. PLEASE EXPLAIN. 2. WHEN THE PREDETERMINED OVERHEAD RATE IS BASED ON DIRECT LABOR-HOURS, THE AMOUNT OF OVERHEAD APPLIED TO A JOB IS PROPORTIONAL TO THE ESTIMATED AMOUNT OF DIRECT LABOR-HOURS FOR THE JOB. TRUE OF FALSE.
Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) manufacturing overhead applied to production during the period of $432,000, (3) estimated fixed manufacturing overhead of $329,400, and (4) estimated variable manufacturing overhead cost per machine-hour of $2.00. The estimated amount of the allocation base (machine-hours) is closest to: 56,900. 54,900. 54,200. 52,900.
Please do not give solution in image format thanku
Compute the amount for each of the following. Direct materials used Indirect materials used Direct labor used Indirect labor used Cost of goods manufactured Cost of goods sold (before closing over- or underapplied overhead) Compute the amount that overhead is overapplied or underapplied.
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…
A company expected its annual overhead costs to be $813200 and machine hours to equal 107000 hours. Actual overhead was $749000, and actual machine hours totalled 98000 hours. How much overhead was over or underapplied? $4200 underapplied O $68400 underapplied O $69000 over-applied O $64400 underapplied
Selected cost data for Aerial Co for the year are as follows: Estimated overhead cost for the year Estimated direct labor cost for the year Actual manufacturing overhead cost for the year Actual direct labor cost for the year Aerial Co uses direct labor to apply overhead to jobs. What is the over or under applied overhead for this year? Do not round the predetermined rate -- only round the last computation. Enter over applied as a positive amount and under applied as a negative amount. Round to the nearest whole number, omit commas and dollar signs. Your Answer: $ 150,000 $ 81,000 $ 164,000 $ 76,000 1 Answer
Assume that actual overhead costs were $78,000 and overhead allocated to jobs was $58,000. The unadjusted balance in Manufacturing Overhead would be was O A. $20,000 credit balance; overapplied O B. $20,000 credit balance; underapplied OC. $20,000 debit balance; underapplied O D. $20,000 debit balance; overapplied because the overhead
Please show your work.
for 11; 12; 13; and 15 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place. 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Note: Round intermediate calculations and your "Percentage" answers to 2 decimal places. 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place.