What is predetermined overhead rate? The Anderson Company forecasts that totaloverhead for the current year will be $15,000,000and total machine hours will be 200,000 hours.However, the actual overhead is $8,000,000 and theactual machine hours are 100,000 hours. If thecompany uses a predetermined overhead rate basedon machine hours for applying overhead, what ispredetermined overhead rate?Select one:a. $80 per machine hourb. $150 per machine hourc. $75 per machine hourd. $40 per machine hour

Step 1:Predetermined overhead rate is a single rate used to allocate overhead to respective jobs. It…

Answered: The Anderson Company forecasts that…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2EB: Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine...

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Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has 100,000 machine hours, would there be an under applied or over applied overhead?
Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are 3,000, and expected number of inspections is 600. The best activity rate for inspection is as follows: a. 40 per inspection b. 40 per hour c. 200 per inspection d. 200 per hour
Overhead is calculated by Amanzi Company based on Direct Labor hours. Amanzi forecasts Overhead to be R700 000, Machine hours to be R200 000, and Direct labour hours to be R35000 at the start of the year. Amanzi has 5000 direct labour hours and 10,000 machine hours each year. What is the rate of predetermined overhead? a. R15.00 per hour per machine b. R14.00 per hour of direct labour c. R20.00 per hour of direct work d. R18.00 per hour per machine g. None of them are valid options.
provide answer please
Goodman Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 50,000 and ending work in process equaled 7,000 units. Goodman had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 40% complete and total materials costs equaled $500,000? O $10.00 O $9.77 O $8.77 O $11.63
Jeremy Inc. forecasts that total overhead for the current year will be $1,050,000 with 700,000 total machine hours. Year to date, the actual overhead is $1,200,000 and the actual machine hours are 850,000 hours. The company uses a predetermined overhead rate based on machine hours for applying overhead. As of this point in time (year to date), what is the amount of overhead? Group of answer choices $75,000 over-allocated $150,000 under-allocated $75,000 under-allocated $150,000 over-allocated
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Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is a.$48 per machine hour b.$45 per machine hour c.$50 per machine hour d.$62 per machine hour
Thorn company forecast that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual over head is $16,000,000 and the actual machine hours are 333,000 hours. The predetermined overhead rate based on machine hours is A. 62 per machine hour B. 45 per machine hour C. 50 per machine hour D. 48 per machine hour

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