The Row-On-Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020: (Click the icon to view the data.) Requirement 1. Calculate the manufacturing overhead allocation rate. Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.) Overhead allocation rate. Data table = HIIR - X Inventory balances on December 31, 2020 were as follows: (Click the icon to view the account balances.) Read the requirements. Data table Account Work in process Finished goods Cost of goods sold Requirements $ Ending balance 50,700 $ 245,050 549,250 2020 direct manufacturing labor cost in ending balance. - X 15,680 62,720 145,600
The Row-On-Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020: (Click the icon to view the data.) Requirement 1. Calculate the manufacturing overhead allocation rate. Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.) Overhead allocation rate. Data table = HIIR - X Inventory balances on December 31, 2020 were as follows: (Click the icon to view the account balances.) Read the requirements. Data table Account Work in process Finished goods Cost of goods sold Requirements $ Ending balance 50,700 $ 245,050 549,250 2020 direct manufacturing labor cost in ending balance. - X 15,680 62,720 145,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer all the part with detailed working, please provide answer in text form without image
![The Row - On-Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing
system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020:
(Click the icon to view the data.)
Requirement 1. Calculate the manufacturing overhead allocation rate.
Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.)
Overhead allocation rate
Data table
Budgeted manufacturing overhead cost
Budgeted direct manufacturing labor cost
Actual manufacturing overhead cost
Actual direct manufacturing labor cost
Print
Done
$
$
$
$
135,000
225,000
137,400
224,000
=
-
Inventory balances on December 31, 2020 were as follows:
(Click the icon to view the account balances.)
Read the requirements.
Data table
Account
Work in process
Finished goods
Cost of goods sold
Requirements
$
Ending balance
50,700 $
245,050
549,250
2020 direct manufacturing
labor cost in ending balance
- X
1. Calculate the manufacturing overhead allocation rate.
2. Compute the amount of under- or overallocated manufacturing overhead.
3. Calculate the ending balances in work in process, finished goods, and cost of
goods sold if under- or overallocated manufacturing overhead is as follows:
a. Written off to cost of goods sold
b.
Prorated based on ending balances (before proration) in each of the
three accounts
c.
4. Which method would you choose? Justify your answer.
Prorated based on the overhead allocated in 2020 in the ending
balances (before proration) in each of the three accounts
15,680
62,720
145,600
- X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77aa87a0-1f01-4e83-9d26-cd7f8b95584f%2Fab612998-3dd5-401e-8d04-5a900a81e9d6%2Fi42usnk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Row - On-Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing
system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020:
(Click the icon to view the data.)
Requirement 1. Calculate the manufacturing overhead allocation rate.
Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.)
Overhead allocation rate
Data table
Budgeted manufacturing overhead cost
Budgeted direct manufacturing labor cost
Actual manufacturing overhead cost
Actual direct manufacturing labor cost
Print
Done
$
$
$
$
135,000
225,000
137,400
224,000
=
-
Inventory balances on December 31, 2020 were as follows:
(Click the icon to view the account balances.)
Read the requirements.
Data table
Account
Work in process
Finished goods
Cost of goods sold
Requirements
$
Ending balance
50,700 $
245,050
549,250
2020 direct manufacturing
labor cost in ending balance
- X
1. Calculate the manufacturing overhead allocation rate.
2. Compute the amount of under- or overallocated manufacturing overhead.
3. Calculate the ending balances in work in process, finished goods, and cost of
goods sold if under- or overallocated manufacturing overhead is as follows:
a. Written off to cost of goods sold
b.
Prorated based on ending balances (before proration) in each of the
three accounts
c.
4. Which method would you choose? Justify your answer.
Prorated based on the overhead allocated in 2020 in the ending
balances (before proration) in each of the three accounts
15,680
62,720
145,600
- X
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