Provide correct answer Wilson Company's activity for the first six months of thecurrent year is as follows:Machine Hours Electrical CostMonthJanuary 2,000$1,600February 3,000$2,200March 2,400$1,840April1,900$1,540May1,800$1,480June2,100$1,660Using the high-low method, the fixed portion of theelectrical cost each month would be?a. $760.b. $190.c. $400.d. $280.

Step 1: Introduction to the High Low MethodIn cost accounting, the method of high low is used to…

Answered: Wilson Company's activity for the first…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Standard unit cost and journal entries The normal capacity of Algonquin Adhesives Inc. is 40,000 direct labor hours and 20,000 units per month. A finished unit requires 6 lb of materials at an estimated cost of 2 per pound. The estimated cost of labor is 10.00 per hour. The plant estimates that overhead (all variable) for a month will be 40,000. During the month of March, the plant totaled 34,800 direct labor hours at an average rate of 9.50 an hour. The plant produced 18,000 units, using 105,000 lb of materials at a cost of 2.04 per pound. 1. Prepare a standard cost summary showing the standard unit cost. 2. Make journal entries to charge materials and labor to Work in Process.
Benson Corporation expects to incur indirect overhead costs of $98,000 per month and direct manufacturing costs of $13 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units January 5,300 Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. Required A Required B b. Allocate overhead costs to each month using the overhead rate computed in Requirement a. c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Complete this question by entering your answers in the tabs below. Required C February March 8,500 4,600 April 6,100 per unit Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. Predetermined overhead rate
Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense. Knowledge Check 02 What is the predetermined overhead rate for the year? O $2 per machine hour O $4 per machine hour $5 per machine hour O $6 per machine hour
please answer in 30 minutes.
The following information are available for XYZ Corporation’s Material E. Annual usage= 12,600 units Working days per year= 360days Normal lead time= 20days The units of Material E are required evenly throughout the year. What is the reorder point?
Perez Corporation expects to incur indirect overhead costs of $107,550 per month and direct manufacturing costs of $15 per unit. The expected production activity for the first four months of the year are as follows. April January February March 8,500 Estimated production in units 5,200 3,900 6,300 Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. b. Allocate overhead costs to each month using the overhead rate computed in Requirement a. c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
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.)
Stuart Corporation expects to incur indirect overhead costs of $102,000 per month and direct manufacturing costs of $13 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. b. Allocate overhead costs to each month using the overhead rate computed in Requirement a. c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Required A Required B Complete this question by entering your answers in the tabs below. January February March 4,500 8,200 5,000 Required C Predetermined overhead rate $ Answer is complete but not entirely correct. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. April 6,300 4 X per unit Required A Required B >
A company estimates its manufacturing overhead will be $882,760 for the next year. What is the predetermined overhead rate if the allocation base is 77,626 estimated machine hours? Round to the nearest hundredth, two decimals.
Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 620,000 units are expected to be produced taking 0.80 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? Estimated: Department 1 $3,111,500 Department 2 Manufacturing overhead costs $1,526,000 Direct labor hours 152,000 DLH 252,000 DLH Machine hours 252,000 MH 177,000 MH Multiple Choice O $11.48 per unit $12.35 per unit $8.65 per unit $5.04 per unit $10.81 per unit

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