The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 435,000 Actual manufacturing overhead: Depreciation Property taxes Indirect labor Supervisory salaries Utilities Insurance Rental of space Indirect material (see data below) Indirect material: Beginning inventory, January 1 Purchases during the year Ending inventory, December 31 $231,000 21,000 82,000 200,000 59,000 30,000 300,000 79,000 48,000 94,000 63,000 1. Compute the firm's predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.) 2. Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)
The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 435,000 Actual manufacturing overhead: Depreciation Property taxes Indirect labor Supervisory salaries Utilities Insurance Rental of space Indirect material (see data below) Indirect material: Beginning inventory, January 1 Purchases during the year Ending inventory, December 31 $231,000 21,000 82,000 200,000 59,000 30,000 300,000 79,000 48,000 94,000 63,000 1. Compute the firm's predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.) 2. Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The following information pertains to Trenton Glass Works for the year just ended.
Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 435,000
Actual manufacturing overhead:
Depreciation
Property taxes
Indirect labor
Supervisory salaries.
Supery
Utilities
cilities
Insurance
to be
Rental of space
direct
Indirect
material (see data below)
Indirect material:
Beginning inventory, January 1
Purchases during the year
Ending inventory, December 31
$231,000
21,000
82,000
200,000
59,000
30,000
300,000
79,000
48,000
94, 000
63,000
1. Compute the firm's predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2
decimal places.)
2. Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal
places.)
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