Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $179,540. Estimated direct labor cost was $446,940 for 19,100 hours. Actual costs for the most recent month are summarized here: Item Description Direct labor (1,500 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries Selling expenses Required: 1. Calculate the predetermined overhead rate. Total Cost $ 44,695 2,500 3,310 3,340 4,720 5,630 1,240 1,840 4,170 5.490
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $179,540. Estimated direct labor cost was $446,940 for 19,100 hours. Actual costs for the most recent month are summarized here: Item Description Direct labor (1,500 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries Selling expenses Required: 1. Calculate the predetermined overhead rate. Total Cost $ 44,695 2,500 3,310 3,340 4,720 5,630 1,240 1,840 4,170 5.490
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:Required:
1. Calculate the predetermined overhead rate.
2. Calculate the amount of applied manufacturing overhead.
2. Clare the
of in
ctur
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the amount of applied manufacturing overhead.
Note: Round your intermediate calculations to two decimal places. Ensure that the graded value and the explanation part are
as per the rounding instruction provided.
Applied Manufacturing Overhead
dec
< Required 1
Required 3 >
Transcribed Image Text:Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the
beginning of the most recent year, the company estimated its manufacturing overhead cost at $179,540. Estimated direct labor cost
was $446,940 for 19,100 hours.
Actual costs for the most recent month are summarized here:
Item Description
Direct labor (1,500 hours)
Indirect costs
Indirect labor
Indirect materials.
Factory rent
Factory supervision
Factory depreciation
Factory janitorial work
Factory insurance
General and administrative salaries
Selling expenses
Total Cost
$ 44,695
2,500
3,310
3,340
4,720
5,630
1,240
1,840
4,170
5,490
Required:
1. Calculate the predetermined overhead rate.
2. Calculate the amount of applied manufacturing overhead.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education