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: 433,000 Actual manufacturing overhead: Depreciation $ 234,000 Property taxes 23,000 Indirect labor 80,000 Supervisory salaries 202,000 Utilities 58,000 Insurance 30,000 Rental of space 301,000 Indirect material (see data below) 79,000 Indirect material: Beginning inventory, January 1 48,000 Purchases during the year 94,000 Ending inventory, December 31 63,000 Compute the firm’s predetermined overhead rate, which is based on direct-labor hours. (Round your answer 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: 433,000 Actual manufacturing overhead: Depreciation $ 234,000 Property taxes 23,000 Indirect labor 80,000 Supervisory salaries 202,000 Utilities 58,000 Insurance 30,000 Rental of space 301,000 Indirect material (see data below) 79,000 Indirect material: Beginning inventory, January 1 48,000 Purchases during the year 94,000 Ending inventory, December 31 63,000 Compute the firm’s predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Actual selling and administrative expenses: 433,000
| Actual manufacturing overhead: | |||
| $ | 234,000 | ||
| Property taxes | 23,000 | ||
| Indirect labor | 80,000 | ||
| Supervisory salaries | 202,000 | ||
| Utilities | 58,000 | ||
| Insurance | 30,000 | ||
| Rental of space | 301,000 | ||
| Indirect material (see data below) | 79,000 | ||
| Indirect material: | |||
| Beginning inventory, January 1 | 48,000 | ||
| Purchases during the year | 94,000 | ||
| Ending inventory, December 31 | 63,000 | ||
Compute the firm’s predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.)
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