The following cost data relate to the office overhead costs of the Charles Wright Tax Preparation Company during the just-completed year: Overhead costs incurred: Office rent $25,700 Office supplies 5,970 Utilities, office 14,190 Salary, office manager 55,470 Salary, receptionist 35,280 Software licensing fees 23,790 Depreciation-office equipment 11,620 Other miscellaneous expenses 30,440 Total overhead costs $202,460 The company uses a predetermined overhead rate to apply overhead cost to each tax job. The rate for the year was $6 per tax-preparer hour. A total of 35,500 tax preparer hours was recorded for the year. Compute the amount of under- or overapplied overhead cost for the year.

The following cost data relate to the office overhead costs of the Charles Wright Tax Preparation Company during the just-completed year: Overhead costs incurred: Office rent $25,700 Office supplies 5,970 Utilities, office 14,190 Salary, office manager 55,470 Salary, receptionist 35,280 Software licensing fees 23,790 Depreciation-office equipment 11,620 Other miscellaneous expenses 30,440 Total overhead costs $202,460 The company uses a predetermined overhead rate to apply overhead cost to each tax job. The rate for the year was $6 per tax-preparer hour. A total of 35,500 tax preparer hours was recorded for the year. Compute the amount of under- or overapplied overhead cost for the year.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.
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The following data from the just completed year are taken from the accounting records of KentonCompany: Sales $ 975,000Direct labor cost $ 165,000Raw material purchases $ 229,000Selling expense $ 48,750Administrative expenses $ 146,250Manufacturing overhead applied to work in process $ 180,000Actual manufacturing overhead costs $ 175,050Inventories: Beginning EndingRaw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000 Required: 1.Prepare a schedule of cost of goods manufactured. Assume all raw materials used in productionwere direct materials.2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overappliedoverhead is closed to Cost of Goods Sold 3. Prepare an income statement.
How do I find the numbers to the questions marks?Selling expenses $ 211,000Purchases of raw materials $ 266,000Direct labor ?Administrative expenses $ 152,000Manufacturing overhead applied to work in process $ 363,000Actual manufacturing overhead cost $ 350,000Inventory balances at the beginning and end of the year were as follows:Beginning of Year End of YearRaw materials $ 53,000 $ 32,000Work in process ? $ 28,000Finished goods $ 33,000 ?The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $750,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $38,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold.
At the end of the year, the Comptroller accumulated the total actual costs and hours incurred by Department A and Department B during the year for the company. Using the information provided below, calculate the final overhead rates for both departments. Plant Total Department B Department A $25,000 $362,000 $337,000 Direct Material Cost $99,000 $459,400 $360,400 Direct Labor Cost $495,000 $794,000 $299,000 Department Overhead Cost 43,000 9,000 34,000 Direct Labor Hours 42,000 41,000 1,000 Machine Hours per direct labor hour Department A: Department B per machine hour
True Company provides the following estimated costs for the year The company unes predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs Direct materials Direct labor $1,000 $1,000 Sales commissions $4,000 Salary of production supervisor 12,000 Indirect materials $ 400 Advertising expense $500 $1,000 Rent on factory equipment True Company estimates that 500 direct labor hours and 1,000 machine-hours will be worked during the year The predetermined overhead rate per hour will be Muple Choke $600 per machine-hour $3.00 per machine hour $6.80 per machine-hour $3.40 per machine-hour
Rob's Pool Cleaning applies overhead support costs to jobs using direct labor costs as the allocation base. The company's unadjusted Cost of Services for the year amounted to $800,000. Determine the company's adjusted Cost of Services given the following data: Estimated Actual Direct Labor $180,000 $177,500 Overhead Support Costs $270,000 $284,000
Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead. Cost $201,000 $178,500 $223,500 $246,000 Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 60,000-machine-hour level of activity in May is as follows: Utilities (variable). Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 51,000 21,000 106,500 $178,500 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how. much of the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal places.)
The following is a manufacturing cost report of Marching Ants Inc. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Materials used in production (including $60,500 of indirect materials) $653,300 Direct labor (including $90,700 maintenance salaries) 604,900 Factory overhead: Supervisor salaries—plant 556,500 Heat, light, and power—plant 151,200 Sales salaries 375,000 Promotional expenses 338,700 Insurance and property taxes—plant 163,300 Insurance and property taxes—corporate offices 235,900 Depreciation—plant and equipment 133,100 Depreciation—corporate offices 96,800 Total $3,308,700 Question Content Area a. 1. Select the correct sentence for errors in the preceding report. 1. The maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. 2. The indirect materials of $60,500 should be included as factory overhead. 3. The maintenance salaries of $90,700 should be included as…
The following is a manufacturing cost report of Marching Ants Inc. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Materials used in production (including $60,500 of indirect materials) $653,300 Direct labor (including $90,700 maintenance salaries) 604,900 Factory overhead: Supervisor salaries—plant 556,500 Heat, light, and power—plant 151,200 Sales salaries 375,000 Promotional expenses 338,700 Insurance and property taxes—plant 163,300 Insurance and property taxes—corporate offices 235,900 Depreciation—plant and equipment 133,100 Depreciation—corporate offices 96,800 Total $3,308,700 Question Content Area a. 1. Select the correct sentence for errors in the preceding report. 1. The maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. 2. The indirect materials of $60,500 should be included as factory overhead. 3. The maintenance salaries of $90,700 should be included as…