The Oliver Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overheadcosts for the year are $748,000, and estimated direct labor hours are 340,000. In October, the company incurred 30,000 direct labor hours.Read the requirements.Requirement 1. Compute the predetermined overhead allocation rate. Round to two decimal places.Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate. (Abbreviation used; qty =Requirement 2. Determine the amount of overhead allocated in October.Predetermined OHallocation rateBegin by selecting the formula to allocate overhead costs. (Abbreviation used; qty = quantity.)Allocated mfg.= overhead costsThe overhead allocated in October isquantity.)

Detailed explanation:Requirement 1 Predetermined Overhead Allocation RateFormula : Predetermined…

Answered: The Oliver Company manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calculate the amount of overhead allocated to the products of a company that has a predetermined overhead rate of $10 per machine hour if machines were used for 10,000 hours.
Parker Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year manufacturing overhead and direct labor-hours were estimated at $50,000 and 20,000 hours, respectively, for the year. In June, Job #461 was completed. Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour. At the end of the year, it was determined that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual manufacturing overhead costs. Required: a. Job #461 contained 100 units. Determine the unit product cost that would appear on the job cost sheet. b. Determine the underapplied or overapplied overhead for the year.
Post the relevant items from your journal entries to thes accounts. 3. Prepare a journal entry for item (g) above. 4. If 11,000 of the custom-made machined parts are shipped to the customer in February, how much of this job's cost will be inclu cost of goods sold for February? Answer is not complete. Complete the question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If 11,000 of the custom-made machined parts are shipped to the customer in February, how much of this job's cost will be included in cost of goods sold for February? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Portion of job cost included in cost of goods sold 45 X < Required 3
At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $520,000, and direct materials costs, $200,000.At year-end, the company reports that actual overhead costs for the year are $528,700 and actual direct materials costs for the year are $200,000. 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead…
Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, 163E and E761, about which it has provided the following data: Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) The company's estimated total manufacturing overhead for the year is $2,760,000 and the company's estimated total direct labor-hours for the year is 60,000. Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Multiple Choice O O O $138.00 $44.10 I63E $18.30 $16.50 1.00 30,000…
Garst Manufacturing is working on two jobs. Cost is accumulated under a job-order costing system, and overhead is applied on the basis of direct labor hours. The company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period: (a) Used $10,000 of direct material on Project I and $6,800 of direct material on Project II. (b) Labor costs for the two jobs amounted to the following: Project I, $24,000 (2,000 hours); Project II, $44,000 (6,000 hours). (c) Project II was sold during the period for $120,000. The ending balance in Work in Process was: Multiple Choice X $34,000. $0. $46,800. $136,000.
The Oswell Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $579,800, and estimated direct labor hours are 260,000. In October, the company incurred 60,000 direct labor hours. Requirement 1. Compute the predetermined overhead allocation rate. Round to two decimal places. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate. Predetermined OH ? ÷ ? = allocation rate ? ÷ ? = ? Requirement 2. Determine the amount of overhead allocated in October. Begin by selecting the formula to allocate overhead costs. Allocated mfg. ? × ? = overhead costs The overhead allocated…
XYZ Company has two production departments, Machining and Customizing. The company uses a job- order costing system and computes a predetermined overhead rate (POHR) in each department. The Machining Department's POHR is based on machine- hours (Mhrs) and the Customizing Department's POHR is based on direct labor-hours (DLH). At the beginning of the current year, the company estimated the following yearly Mhrs and DLH to be used in each department: 20,000 Mhrs and 15,000 DLH in the Marching Department; 10,000 Mhrs and 25,000 DLH in the Customizing Department. The company also estimated the yearly total manufacturing overhead cost in each department: OMR150,000 in the Machining Department and OMR100,000 in the Customizing Department. During the year, Job XY incurred the following numbber of hours in each department: 58 Mhrs and 30 DLH in the Machining Department; and 80 Mhrs and 50 DLH in the- Customizing Department. What is the total amount of manufacturing overhead that should be…
XYZ Company has two production departments, Machining and Customizing. The company uses job - order costing system and computes a predetermined overhead rate (POHR) in eld department. The Machining Department's POHR is based on machine hours (Mhes) and the Customizing Department's POHR is based on direct labor - hours (DLH). At the beginning of the current year the company estimated the following yearly Mhrs and DLH to be used in each department 20,000 Mhrs and 15,000 DLH in the Marching Department 10,000 Mhes and 25,000 DLH in the Customizing Department. The company also estimated the yearly total manufacturing overhead cost in each department OMR150,000 in the Machining Department and OMR100.000 in the Customizing Department. During the year Job XY incurred the following number of hours in each department 50 Mhrs and 30 DLH in the Machining Department and 80 Mhrs and 50 DUA Customizing Department What is the total amount of manufacturing overhead that should? be applied to lob…
Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $440,300 and total machine hours of 47,600. During the year actual manufacturing overhead incurred was $432,960 and 49,200 machine hours were used. (a) Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined Overhead Rate (b) Calculate how much manufacturing overhead will be applied to production. Manufacturing Overhead Applied per hour (c) Is overhead over- or underapplied? By how much? (Input the amount as positive value.) Overhead (d) What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?
Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor- hours. The company based its predetermined overhead rate for the current year on 46,000 direct labor-hours, total fixed manufacturing overhead cost of $322,000, and a variable manufacturing overhead rate of $4.80 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data: Total direct labor-hours Direct materials Direct labor cost 400 $ 800 $ 6,300 Required: Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round intermediate calculations and final answer to 2 decimal places.) Selling price per unit
Rockwell Collins, headquartered in Cedar Rapids, IA, sells aviation and information technology systems. Rockwell applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, a small division of the company based its predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour. Therefore, the overhead for the year was:

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