Over or under-applied overheads : When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead. The predetermined overhead rate using estimated labor cost.

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Answer 1

Question

Chapter 19, Problem 27E

1.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

The predetermined overhead rate using estimated labor cost.

2.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The T-account of factory overhead computes applied overhead using the predetermined overhead.

3.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The journal entry to close the over-applied overhead to the cost of goods sold.

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Calculating predetermined overhead allocation rate, allocating overhead Rosco Company estimates the company will incur $80,750 in overhead costs and 4750 direct labor hours during the year. Actual direct labor hours were 4,600. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base, and prepare the journal entry for the allocation of overhead.

At the beginning of the year, Mirmax set its predetermined overhead rate for movies produced during the year by using the following estimates: overhead costs, $1,680,000, and direct labor costs, $480,000. At year-end, the company’s actual overhead costs for the year are $1,670,000. 1. Determine the predetermined overhead rate using estimated direct labor costs.2. Enter the actual overhead costs incurred and the amount of overhead cost applied to movies during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year.3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold.

At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,680,000, and direct labor costs, $480,000. At year-end, the company’s records show that actual overhead costs for the year are $1,652,000. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released . $425,000 Movies still in production 50,000 Total actual direct labor cost . $475,000 1. Determine the predetermined overhead rate for the year. 2. Set up a T-account for overhead and enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate. 3. Determine whether overhead is overapplied or underapplied (and the amount) during the year. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.

Answer 2

Question

Chapter 19, Problem 27E

1.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

The predetermined overhead rate using estimated labor cost.

2.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The T-account of factory overhead computes applied overhead using the predetermined overhead.

3.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The journal entry to close the over-applied overhead to the cost of goods sold.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 19, Problem 27E

1.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

The predetermined overhead rate using estimated labor cost.

2.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The T-account of factory overhead computes applied overhead using the predetermined overhead.

3.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The journal entry to close the over-applied overhead to the cost of goods sold.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 19, Problem 27E

1.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

The predetermined overhead rate using estimated labor cost.

2.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The T-account of factory overhead computes applied overhead using the predetermined overhead.

3.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The journal entry to close the over-applied overhead to the cost of goods sold.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 19, Problem 27E

1.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

The predetermined overhead rate using estimated labor cost.

2.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The T-account of factory overhead computes applied overhead using the predetermined overhead.

3.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The journal entry to close the over-applied overhead to the cost of goods sold.

Answer 6

Chapter 19, Problem 27E

1.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

The predetermined overhead rate using estimated labor cost.

Answer 7

Chapter 19, Problem 27E

1.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

The predetermined overhead rate using estimated labor cost.

Answer 8

2.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The T-account of factory overhead computes applied overhead using the predetermined overhead.

Answer 9

2.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The T-account of factory overhead computes applied overhead using the predetermined overhead.

Answer 10

3.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The journal entry to close the over-applied overhead to the cost of goods sold.

Answer 11

3.

To determine

Concept introduction:

Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.

To prepare: The journal entry to close the over-applied overhead to the cost of goods sold.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 19 - Jobs and job lots C1 Determine which of the...Ch. 19 - Job cost sheets C2 Clemens Cars's job cost sheet...Ch. 19 - Documents in job order costing P1 P2 P3 The left...Ch. 19 - Raw materials journal entries P1 During the...Ch. 19 - Prob. 5QS Ch. 19 - Prob. 6QS Ch. 19 - Prob. 7QS Ch. 19 - Prob. 8QS Ch. 19 - Prob. 9QS Ch. 19 - Prob. 10QS

Over or under-applied overheads : When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead. The predetermined overhead rate using estimated labor cost.

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Chapter 19 Solutions