Wardour Street Ltd., a subsidiary of Oakley Green, manufactures and sells woods. Manufacturing overhead is allocated to work in the process using an estimated overhead rate. Beginning and ending work in process were both zero. Transactions for the company during December are shown as follows: Direct materials issued to production $180,000 Indirect materials issued to production $35,000 Other manufacturing overhead $245,000 Overhead allocated $230,000 Direct labour costs $75,000 Is the manufacturing overhead under- or over-applied? By how much?

Q: Wilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of…

A: Step 1: Plant wide overhead rate is a single rate used to allocate overhead to respective jobs and…

Q: a. Raw materials used in production: Molding Department, $29,100; and Firing Department, $5,000. b.…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Prepare a journal entry for each of the eight transactions listed.

A: 1.Calculation of Direct labour Hours :- Direct labour costs $500000 Rate per hour $20 Direct labour…

Q: assembly 4,000 total 10,000 Estimated total fixed manufacturing overhead cost: molding $ 43,800…

A: Plant Overhead Rate:It is a single predetermined rate that the company uses to allocate the…

Q: True Company provides the following estimated costs for the year The company unes a predesemined…

A: The predetermined overhead rate can be calculated by dividing total overhead by total machine hours.…

Q: Assume that a company uses direct labor dollars as the allocation base to compute its predetermined…

A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

Q: Chain Reaction, Inc. allocates overhead using machine hours as the allocation activity.  The…

A: Given allocation  base is machine hours  Overhead cost per machine hour = $400000/10000 =$40

Q: The current system at ACE allocates manufacturing overhead to products based on direct labor costs.…

A: The question is based on the concept of Cost Accounting. Allocation of overhead is made on the basis…

Q: Quality Brick Company produces bricks in two processing departments-Molding and Firing. Information…

A: The journal entries are used for the recording of the transactions in the order in which they occur.…

Q: Quality Brick Company produces bricks in two processing departments-Molding and Firing. Information…

A: Journal entry is an art of recording, summarizing and classifying the business transactions in the…

Q: Dunder Corp. manufactures products in two departments: Mixing and Packaging. The company allocates…

A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

Q: Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the…

A: Predetermined overhead rate = (Estimated Fixed manufacturing overhead +Variable Manufacturing…

Q: Opunul Corporation has two manufacturing departments-Molding and Finishing. The company used the…

A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

Q: Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The…

A: Predetermined overhead rate = Estimated overhead cost / Estimated direct labor hours Predetermined…

Q: The WIP account given below relates to the activities of Jones Ltd for the month of April: April 1…

A: The direct costs and overhead applied are debited to work in process account. The finished goods…

Q: Ahlia Industries allocates manufacturing overhead at a predetermined rate of 180% of direct labor…

A: The cost of goods manufactured includes the costs incurred during the period.

Q: Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing…

A: To calculate the predetermined overhead allocation rate, we need to divide the total estimated…

Q: Ahlia Industries allocates manufacturing overhead at a predetermined rate of 180% of direct labor…

A: Cost of goods manufactured = Beginning WIP inventory + costs incurred during the period - Ending WIP…

Q: In September, J Dogg Company purchased materials costing $455,000 and incurred direct labor cost of…

A: Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This…

Q: Daniel LLC incurred the following cost in the month of October: Material…

A: The equivalent units are calculated on the basis of the percentage of the work completed during the…

Q: The Orel manufactures products in two departments: Mixing and Packaging. The company allocates…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: Department J had no work in process at the beginning of the period, 18,000 units were completed…

A: Total cost refers to the overall expense incurred by a business to produce a specific quantity of…

Q: The following information for the past year is available from Gas Company, a company that uses…

A: Managing fixed overhead costs is also an important factor in cost control and profitability. By…

Q: Quality Brick Company produces bricks in two processing departments-Molding and Firing. Information…

A: The justification of debit or credit of accounts are as follows:Direct materials and labor used,…

Q: Quality Brick Company produces bricks in two processing departments-Molding and Firing. Information…

A: Transfer the cost of materials used to the production.Increase the respective inventory by debiting…

Q: Boyle Manufacturing Co. charges factory overhead to production at 80% of direct labor cost. Jobs 842…

A: Prime cost comprises of direct material and direct labor

Q: laybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the…

A: Predetermined overhead rate:-These rate is calculated by dividing the activity base with the total…

Q: The April Work in Process account for Coventry Co. contained the following: Beginning balance --…

A: Cost accounting is useful since it can show where a company spends money, how much it generates, and…

Q: Bryant Company incurred costs of $50,000 for direct materials (raw) purchased. Direct labor was…

A: Cost of goods manufactured(COGS) can be computed as, =Manufacturing cost in total + Beginning WIP -…

Q: Linger Products uses a two-stage allocation method to assign costs to its products. The following…

A: Manufacturing overhead is also regarded as the factory overhead, which include the manufacturing…

Q: Cards by Hallmark allocate factory overhead based on hours used by a piece of equipment. At the…

A: Step 1: Introduction to Factory Overhead:Factory overhead costs represent the aggregate indirect…

Q: The following cost data relate to the manufacturing activities of Newberry Company during the just…

A: Variance is the result of the difference of expected value and actual results. It can be calculated…

Q: Your Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of…

A: The overhead applied for the period was $ 15000 Refer step 2 for explanation

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.