Homework Help is Here – Start Your Trial Now!
Business
Accounting
Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that direct material costs will amount to $1,460,000. During July, Yarra worked on four jobs with actual direct materials costs of $75,000 for Job 0701, $100,000 for Job 0702, $130,000 for Job 0703, and $65,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materials costs were $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, O701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1?

Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that direct material costs will amount to $1,460,000. During July, Yarra worked on four jobs with actual direct materials costs of $75,000 for Job 0701, $100,000 for Job 0702, $130,000 for Job 0703, and $65,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materials costs were $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, O701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

I need help with this accounting problem

Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that direct material costs will amount to $1,460,000. During July, Yarra worked on four jobs with actual direct materials costs of $75,000 for Job 0701, $100,000 for Job 0702, $130,000 for Job 0703, and $65,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materials costs were $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? Job 0701 Job 0702 Job 0703 Job 0704 < Required A Required B >
Transcribed Image Text:Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that direct material costs will amount to $1,460,000. During July, Yarra worked on four jobs with actual direct materials costs of $75,000 for Job 0701, $100,000 for Job 0702, $130,000 for Job 0703, and $65,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materials costs were $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? Job 0701 Job 0702 Job 0703 Job 0704 < Required A Required B >
Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that direct material costs will amount to $1,460,000. During July, Yarra worked on four jobs with actual direct materials costs of $75,000 for Job 0701, $100,000 for Job 0702, $130,000 for Job 0703, and $65,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materials costs were $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1? Complete this question by entering your answers in the tabs below. Required A Required B What was the over- or underapplied manufacturing overhead for year 1? | manufacturing overhead < Required A Required B>
Transcribed Image Text:Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that direct material costs will amount to $1,460,000. During July, Yarra worked on four jobs with actual direct materials costs of $75,000 for Job 0701, $100,000 for Job 0702, $130,000 for Job 0703, and $65,000 for Job 0704. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materials costs were $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0701, 0702, 0703, and 0704? b. What was the over- or underapplied manufacturing overhead for year 1? Complete this question by entering your answers in the tabs below. Required A Required B What was the over- or underapplied manufacturing overhead for year 1? | manufacturing overhead < Required A Required B>
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS