The Tomlin Company forecasts that the total overhead for the current year will be $15,000,000 and that the total machine hour will be 200,000 hours. Year to date, the actual overhead is $15,000,000 and the actual machine hours are 220,000 hours. If the Tomlin company uses a predetermined overhead rate based on machine hours of applying overhead, as of this point in time (year to date) the overhead is over/under applied by: a. $1,000,000 over b. $1,000,000 under c. $500,00 over d. 500,000 under

The Tomlin Company forecasts that the total overhead for the current year will be $15,000,000 and that the total machine hour will be 200,000 hours. Year to date, the actual overhead is $15,000,000 and the actual machine hours are 220,000 hours. If the Tomlin company uses a predetermined overhead rate based on machine hours of applying overhead, as of this point in time (year to date) the overhead is over/under applied by: a. $1,000,000 over b. $1,000,000 under c. $500,00 over d. 500,000 under

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

See similar textbooks

Similar questions

Suppose that a manufacturer plans to produce 78,000 units of product duringa year. A lot of size L, to be determined, is to be made periodically, andevery time a lot is made, it is necessary to set up the appropriate machineryand other production facilities before production starts. The set up cost is thena fixed cost incurred for each lot produced and it is determined as $ 200. Whenproduction commences , the cost of making a unit is constant at $ 7.5 per unit.Inventory cost is to be determined on the basis that it costs $ 0.50 per year tocarry one unit in inventory. Also find how many lots the manufacturerwould make per year and each lot would be produced in how manydays ?.
The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated that 40,000 units will be produced at a materials cost of P200,000. Production will require 40,000 man-hours at an estimated wage cost of P80,000. The machines will run about 25,000 hours. How much is the Machine Depreciation Cost Driver rate?
At the begging of the year, Crane Company estimates annual overhead costs to be 2400000 and that 100000 machine hours will be operated. Using machine hours as a base, the amount of overhead apllied during the year if actual machine hours for the year was 115000 hours is?
The Thomlin Company forecasts that total factory overhead for the current year will be $11,759,000 with 150,000 total machine hours. Year to date, the actual factory overhead is $7,604,000 and the actual machine hours are 100,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a. $-294,000 overapplied b. $-196,000 overapplied c. $-294,000 underapplied d. $-196,000 underapplied
Thomlin Company forecasts that total overhead for the current year will be $11,176,000 with 183,000 total machine hours. Year to date, the actual overhead is $7,700,000 and the actual machine hours are 97,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.
The management of Red Star Company estimates that 60,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $5 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate?
If answered within 30mins,it would be great!!!
Thomlin Company forecasts that total overhead for the current year will be $10,864,000 with 194,000 total machine hours. Year to date, the actual overhead is $4,779,000, and the actual machine hours are 81,000 hours. The predetermined overhead rate based on machine hours is
Need answer
A company budgets overhead cost of $8,476,000 for the next year. The company uses machine hours as its overhead allocation base. If 400,000 machine hours are planned for the next year, what is the company’s plantwide overhead rate? (Round your answer to two decimal places.)
A machine costs $17,652 and is expected to have a scrap value of $2,919 whenever it is retired. Operating and Maintenance costs are $1,355 for the first year and expected to increase by $1,233 thereafter. If the MARR is 13%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years. Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas.
Labor cost for set-up is $500/hour. The plant plans on level material use and operates 50 days per year to satisfy an annual demand of 5000 units. Dailty production is projected to be 1000 units and lot size is 700. Annual holding cost per unit is projected to be $25. Calculate the time it takes to setup.