Theodore Company's overhead rate for machine setups is $115 per setup. A total of 105 setups are estimated for the period. At year-end, it was determined that Products A and B have 60 and 45 setups, respectively. How much is the overhead cost assigned to each product? Product A $10,062.50, Product B $2,012.50 Not enough information to determine the answer Product A $6,037.50, Product B $6,037.50 O Product A $6,900, Product B $5,175 O O O O

Theodore Company's overhead rate for machine setups is $115 per setup. A total of 105 setups are estimated for the period. At year-end, it was determined that Products A and B have 60 and 45 setups, respectively. How much is the overhead cost assigned to each product? Product A $10,062.50, Product B $2,012.50 Not enough information to determine the answer Product A $6,037.50, Product B $6,037.50 O Product A $6,900, Product B $5,175 O O O O

Name: Theodore Company's overhead rate for machine setups is $115 per setup
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Description: Theodore Company's overhead rate for machine setups is $115 per setup. A total of 105 setups are estimated for the period. At year-end, it was determined that Products Aand B have 60 and 45 setups, respectively. How much is the overhead cost assigne

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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Ammons Corporation allocates manufacturing overhead using a predetermined manufacturing overhead rate of $1.50 per direct labor hour (DLH), and had actual manufacturing overhead costs for the most recent year of $29,500. Actual direct labor cost was $19 per hour and estimated direct labor cost was $17 per direct labor hour. At the end of the year, Ammons Corporation found it had over-allocated manufacturing overhead by $1,250. How many direct labor hours (DLH) were worked in total during the year? Select one: a. 18,833 DLH b. 20,500 DLH c. 1,552 DLH d. 1,735 DLH e. 19,667 DLH
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Winston Company estimates that the factory overhead for the following year will be $943,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 36,300 hours. The total machine hours for the year were 54,500 hours. The actual factory overhead for the year was $1,437,000. Enter the amount as a positive number. a. Determine the total factory overhead amount applied. Round to the nearest dollar. b. Compute the over- or underapplied amount for the year. c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank.
Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct labor hours are estimated to be 513,000. Required: A. For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent. B. During May, Bergan Company accumulated 19,000 hours of direct labor costs on Job 200 and 23,000 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. C. Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.
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