The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the yeathe Corporation made the following estimates:Direct labor costManufacturing overheadDirect labor-hoursMachine-hoursDept. A Dept. B$60,000 $40,000$90,000 $45,0006,000 9,0002,000 15,000What predetermined overhead rates would be used in Dept. A and Dept. B, respectively?

The predetermined overhead rate is a rate used to apply manufacturing overhead to work-in-progress…

Answered: The Silver Corporation uses a…

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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Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $274,000 and direct labor hours to be 20,000. Actual overhead for the year was $320,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 24,400 direct labor hours, how much manufacturing overhead is applied to the company's jobs?
Beamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year: Direct materials Direct labor Sales commissions Salary of production supervisor Indirect materials Advertising expense Rent on factory equipment $ 1,000 $ 3,000 $ 4,000 $ 2,000 S 400 $ 800 $ 1,000 Beamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be: Predetermined overhead rate = Estimated total manufacturing overhead = Estimated total amount of the allocation base = $3,400 1,000 machine- hours = $3.40 per machine-hour $6.80 per machine-hour $6.00 per machine-hour $3.00 per machine-hour O $3.40 per machine-hour
Mickley Company's plantwide predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $10.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 70 units, what is its unit product cost? Note: Round your answer to 2 decimal places. 1. Total manufacturing cost 2. Unit product cost $ 270 $ 100 $ 8 per unit
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $20.00 per direct labor-hour and $16.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $22.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 380 $ 41 Direct labor $ 187 $ 99 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.) 2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 1. Total manufacturing cost 2. Unit product cost per unit
Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The company's operations are divided into a casting department and a finishing department The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of $23 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments Casting Department OA. $401 OB. $472 OC. $1,423 OD. $421 Actual results Direct labor hours used 13 7 Machine hours used The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job A216 is $2,000. How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates? Finishing Department 5 2
Session 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 the following data: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour Recently, Job K913 was completed with the following characteristics: Total direct labor-hours Direct materials Direct labor cost 150 $ 705 $ 4,650 70,000 $ 511,000 $ 2.10 The total job cost for Job K913 is closest to: (Round your intermediate calculations to 2 decimal places.)
Kareem Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost OMR 1,600,000 Actual annual overhead cost OMR 1,575,000 Estimated machine hours 400,000 Estimated Labor hours 200,000 Actual Labor hours 150,000 Actual machine hours 390,000
30) Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was 80% complete as to conversion. materials for finishing the units are added near the end of the process. Beginning inventorie included $24,000 for transferred-in costs and $28,000 for conversion costs. Ending inventory 30% complete. Additional information about the two departments follows: Finishing 24,000 Beginning workin-process units Units started this period Units transferred this period Ending workin-process units Cutting 20,000 60,000 64,000 68,000…
← Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost. The manufacturing overhead cost allocated during the year is $280,000. The details of production and costs incurred during the year are as follows: Actual direct materials cost Actual direct labor cost $811,000 $170,000 $262,000 5,520 hours Actual overhead costs incurred Total direct labor hours What is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places.) OA. 164.71% OB. 34.53% OC. 93.57% O D. 64.89% XXID
applying factory overhead should be direct labor hours, which are estimated to be 96,900 hours. Question Content Area a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent.fill in the blank 1 of 1$ per direct labor hour b. Determine the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 1,200 and to Job 777 if the amount of direct labor hours is 3,000.Job 345 fill in the blank 1 of 1$Job 777 fill in the blank 1 of 1$ Question Content Area c. Journalize the entry for the factory overhead applied if Jobs 345 and 777 are the only jobs for the period. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank
Mason Company has two manufacturing departments-Machining and Assembly. All of the company's manufacturing overhead costs are fixed costs. It provided the following estimates at the beginning of the year as well as the following information for Jobs A and B: Estimated Data Manufacturing overhead Direct labor-hours Machine-hours Job A Direct labor-hours Machine-hours Job B Direct labor-hours Machine-hours Machining $5,054,000 19,000 266,000 Machining Assembly 5 10 11 2 Machining 4 12 Assembly 5 3 Assembly $361,000 266,000 14,000 Total 15 13 Total 9 15 Total $5,415,000 285,000 280,000 Required: 1. If Mason Company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? 2. Assume Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based on machine-hours and the Assembly Department is allocated based on direct labor-hours. How much…
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