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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In December, a company was calculating the predetermined factory overhead rate for the upcoming year, based on machine hours, using the following estimated costs: direct materials $ 550,000, direct labor $ 350,000; factory overhead $ 175,000, sales expenses $ 40,000, general and administrative expenses $ 35,000. The following estimates were also available: direct labor hours 500; machine hours 250 Calculate the predetermined overhead rate for the upcoming year. Multiple Choice $500 per direct labor hour. $650 per machine hour. $350 per direct labor hour. $500 per direct labor hour. $650 per machine hour. $350 per direct labor hour. $1,000 per machine hour. $700 per machine hour.
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estion Manufacturing overhead was estimated to be OMR 200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was OMR 215,000, and actual labor hours were 21,000. Which of the following would be correct? et ered O a. Overhead is overapplied by OMR 15,000. ed out of O b. None of the given answer is correct O c. Overhead is underapplied by OMR 15,000. O d. Overhead is underapplied by OMR 5,000. ion O e. Overhead is overapplied by OMR 5,000.
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Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was: Select one: a. $0.04 per machine hour b. $0.05 per machine hour c. $20 per machine hour d. $21 per machine hour e. S25 per machine hour
pany applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 vear-end, actual overhead totaled $525,000, and actual machine hours were 25.000, On the basis of this information, the 20x1 predetermined overhead rate was: A) $20 per machine hour. B) $0.05 per machine hour. C) $0.04 per machine hour. D) $25 per machine hour. E) $21 per machine hour.
Shoes Wisely, Inc. allocates overhead using machine hours as the allocation base. The following information was estimated at the beginning of the year: Estimated Manufacturing Overhead $73,000 Estimated Machine Hours 19,000 Actual overhead totaled $72,000. During the year, the company produced 8,500 units of product using 14,000 machine hours and 60,000 direct labor hours. How much manufacturing overhead was allcoated to the product during the year? Round your answer to whole dollars.
Henke corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor hours for the upcoming year at 69,000 labor hours. The estimated variable manufacturing overhead was $7.30 per labor hour and the estimated total fix manufacturing overhead was $1,380,000. The actual labor hours for the year turned out to be 73,000 labor hours. Compute the company's predetermined overhead rate for the recently completed year
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Vaughn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Est. Overhead $ 105000 O $7014 per order. O $1.05 per direct labor hour. O $210 per order. O $0.11 per part. 338500 1433500 1300000 330000 Cost Driver Activity 500 orders 450 setups 125000 MH 1000000 parts 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is
Winston Company estimates that the factory overhead for the following year will be $1,134,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 37,800 hours. The total machine hours for the year were 54,300 hours. The actual factory overhead for the year was $1,652,000. Required: (a) Determine the total factory overhead amount applied. (b) Calculate the overapplied or underapplied amount for the year. Enter the amount as positive values. (c) Prepare the journal entry to close Factory Overhead into Cost of Goods Sold. Refer to the Chart of Accounts for exact wording of account titles.