Exercise 3-34 Overapplied or Underapplied Overhead (LO 3-4, 3-5)(The following information applies to the questions displayed below.]The following information pertains to Trenton Glass Works for the year just ended.Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16Actual direct-labor cost: 80,000 hours at $17.50 per hourBudgeted manufacturing overhead: $997,500Actual selling and administrative expenses: 437,000perhourActual manufacturing overhead:DepreciationProperty taxesIndirect labor$234,00021,00081,000201,00059,00031,000301,00079,000Supervisory salariesUtilitiesInsuranceRental of spaceIndirect material (see data below)Indirect material:Beginning inventory, January 1Purchases during the yearEnding inventory, December 3149,00094,00064,000Exercise 3-34 Part 22. Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal placOverapplied overhead$4614,000

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Description: Exercise 3-34 Overapplied or Underapplied Overhead (LO 3-4, 3-5)(The following information applies to the questions displayed below.]The following information pertains to Trenton Glass Works for the year just ended.Budgeted direct-labor cost: 75,000

When the expenses incurred are less than the budgeted expense, it is said to be overhead overapplied…

Business

Accounting

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: 437,000

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: 437,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 62P: (Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith...

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A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Required information Exercise 3-34 Overapplied or Underapplied Overhead (LO 3-4, 3-5) [The following information applies to the questions displayed below.] 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 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 Exercise 3-34 Part 1 Predetermined overhead rate $230,000 20,000 81,000 200,000 per DLH 58,000 30,000 301,000 79,000 Required: 1. Compute the firm's predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.)…
Required information Exercise 3-34 Overapplied or Underapplied Overhead (LO 3-4, 3-5) [The following information applies to the questions displayed below.] 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 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 Exercise 3-34 Part 2 $230,000 20,000 81,000 200,000 58,000 30,000 301,000 79,000 177 48,000 93,000 62,000 2. Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)
Required Information Exercse 3-34 Overappled or Underapplled Overhead (LO 3-4, 3-5) The following nformation apples to the questions displayed befow.] The following Information pertalns to Trenton Glass Works for the year Just ended. Budgeted direct-Habor 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 437,000 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 $234,000 21,800 81, 000 201,000 59,000 31,000 301,000 79,000 49,000 94,000 64,000 Exercise 3-34 Part 3 3. Prepare a journal entry to close out the Manufacturing Overhead account Into Cost of Goods Sold. (Round Intermedlate calculations to 2 decimal places. If no…
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Exercise 6-48 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-3, 4, 5) Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data refer to operations expected for next month. A1 B2 Total Revenue $ 170,000 $ 510,000 $ 680,000 Direct material 65,000 130,000 195,000 Direct labor 54,000 128,250 182,250 Overhead: Direct-material related 42,900 Direct-labor related 40,095 Required: Channing uses a two-stage cost allocation system, It uses direct-material costs to allocate direct-materials related overhead and direct-labor costs to allocate direct-labor related overhead costs. a. Compute the direct-material related overhead rate for next month. b. Compute the direct-labor related overhead rate for next month. c. What is the total overhead allocated to product A1 next month? d. What is the total…
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--/1 Question 23 View Policies Current Attempt in Progress upport The predetermined overhead rate for Crane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $14208 variable and $8640 fixed, and 2400 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is O $1152 F. O $2880 U. O $2880 F. O $1152 U. ch hp ins pr f12 f11 f10 f9 f8 f6 f7 f5 & 80 %3D 60 9. T.
Month April May June Machine-Hours 63, eee 53,000 73,00e 84,e00 Cost $115, eee $138, 000 $326, 000 $193,000 July Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 53,000-machine-hour level of activity in May is as follows Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) $ 25,000 28, 000 85,000 $138, 000 Total overhead cost The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $193,000 of overhead cost in July was maintenance cost. (Hint To do this, first determine how much of the $193,000 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.) 11,623 Maintenance cost in July
Question No.8 King manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are as follows. Maintenance Rs.70,000 Material Handling 30,000 Set-ups 25,000 Inspection 50,000 Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct labor hours, 50,000 direct labor hour are budgeted for next year? The company has been asked to submit a bid for a proposed job. The plant manager feels that obtaining this job would result in new business in future years. Usually, bids are based upon full manufacturing cost plus 30 percent. Estimates for the proposed job are as follows: Direct material Rs.2,500 Direct labor (750 hours) Rs.3,750 Number of machine hours 300 Number of material moves 8…
Problem 7-47 (Algo) Estimate Machine-Hours Worked from Overhead Data (LO 7-3) Melbourne Company estimated that machine-hours for the year would be 39,100 hours and overhead (all fixed) would be $144,670. Melbourne applies its overhead on the basis of machine-hours. During the year, all overhead costs were exactly as planned ($144,670). There was $22,200 in overapplied overhead. Required: How many machine-hours were worked during the period? (Do not round intermediate calculations.)
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