Direct Labor Cost: Direct Labor Cost is a direct manufacturing cost that is incurred in the production of goods or provision of services. Manufacturing Overhead : Manufacturing overhead refers to indirect costs that are incurred in the factory, other than direct materials costs and direct labor costs. Some of the examples of manufacturing overhead are depreciation on manufacturing plant and equipment, property taxes on plant, plant janitor’s wages etc. Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the estimated overhead cost by an estimated quantity of allocation base. Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Direct labor hours, machine hours, direct labor cost etc. 1. (a.): To Compute: Chance Realtor’s hourly direct labor cost rate.

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Answer 1

Question

Chapter 19, Problem E19.27E

To determine

Direct Labor Cost: Direct Labor Cost is a direct manufacturing cost that is incurred in the production of goods or provision of services.

Manufacturing Overhead: Manufacturing overhead refers to indirect costs that are incurred in the factory, other than direct materials costs and direct labor costs. Some of the examples of manufacturing overhead are depreciation on manufacturing plant and equipment, property taxes on plant, plant janitor’s wages etc.

Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the estimated overhead cost by an estimated quantity of allocation base.

Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Direct labor hours, machine hours, direct labor cost etc.

1.

(a.):

To Compute: Chance Realtor’s hourly direct labor cost rate.

To determine

(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

To determine

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

To determine

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

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Students have asked these similar questions

Pteri Manufacturing makes a single product - the Pteri. Information for 2005 appears below: Sales in units: 200,000 Production in units: 250,000 Beginning inventory: 0 Variable production cost per unit: $1.00 Variable selling cost per unit: $0.30 Fixed production cost per year: $100,000 Fixed Selling and administrative cost per year: $50,000 Selling price per unit $3.00 What is the cost per unit of inventory using variable costing?

Anderson Enterprises incurred the following costs while producing 500 units: direct materials, $15 per unit; direct labor, $37.50 per unit; variable manufacturing overhead, $22.50 per unit: total fixed overhead costs, $15,000; variable selling and administrative costs, $7.50 per unit: total fixed selling and administrative costs, $11,250. A. What is the per unit product cost using variable costing? B. What is the operating income using variable costing if 450 units are sold for $150 each?

Subject:- General Account

Answer 2

Question

Chapter 19, Problem E19.27E

To determine

Direct Labor Cost: Direct Labor Cost is a direct manufacturing cost that is incurred in the production of goods or provision of services.

Manufacturing Overhead: Manufacturing overhead refers to indirect costs that are incurred in the factory, other than direct materials costs and direct labor costs. Some of the examples of manufacturing overhead are depreciation on manufacturing plant and equipment, property taxes on plant, plant janitor’s wages etc.

Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the estimated overhead cost by an estimated quantity of allocation base.

Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Direct labor hours, machine hours, direct labor cost etc.

1.

(a.):

To Compute: Chance Realtor’s hourly direct labor cost rate.

To determine

(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

To determine

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

To determine

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

Expert Solution & Answer

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Answer 3

Question

Chapter 19, Problem E19.27E

To determine

Direct Labor Cost: Direct Labor Cost is a direct manufacturing cost that is incurred in the production of goods or provision of services.

Manufacturing Overhead: Manufacturing overhead refers to indirect costs that are incurred in the factory, other than direct materials costs and direct labor costs. Some of the examples of manufacturing overhead are depreciation on manufacturing plant and equipment, property taxes on plant, plant janitor’s wages etc.

Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the estimated overhead cost by an estimated quantity of allocation base.

Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Direct labor hours, machine hours, direct labor cost etc.

1.

(a.):

To Compute: Chance Realtor’s hourly direct labor cost rate.

To determine

(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

To determine

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

To determine

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem E19.27E

To determine

Direct Labor Cost: Direct Labor Cost is a direct manufacturing cost that is incurred in the production of goods or provision of services.

Manufacturing Overhead: Manufacturing overhead refers to indirect costs that are incurred in the factory, other than direct materials costs and direct labor costs. Some of the examples of manufacturing overhead are depreciation on manufacturing plant and equipment, property taxes on plant, plant janitor’s wages etc.

Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the estimated overhead cost by an estimated quantity of allocation base.

Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Direct labor hours, machine hours, direct labor cost etc.

1.

(a.):

To Compute: Chance Realtor’s hourly direct labor cost rate.

To determine

(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

To determine

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

To determine

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

Expert Solution & Answer

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See solution

Answer 5

Chapter 19, Problem E19.27E

To determine

Direct Labor Cost: Direct Labor Cost is a direct manufacturing cost that is incurred in the production of goods or provision of services.

Manufacturing Overhead: Manufacturing overhead refers to indirect costs that are incurred in the factory, other than direct materials costs and direct labor costs. Some of the examples of manufacturing overhead are depreciation on manufacturing plant and equipment, property taxes on plant, plant janitor’s wages etc.

Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the estimated overhead cost by an estimated quantity of allocation base.

Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Direct labor hours, machine hours, direct labor cost etc.

1.

(a.):

To Compute: Chance Realtor’s hourly direct labor cost rate.

To determine

(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

To determine

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

To determine

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

Answer 6

Chapter 19, Problem E19.27E

To determine

Direct Labor Cost: Direct Labor Cost is a direct manufacturing cost that is incurred in the production of goods or provision of services.

Manufacturing Overhead: Manufacturing overhead refers to indirect costs that are incurred in the factory, other than direct materials costs and direct labor costs. Some of the examples of manufacturing overhead are depreciation on manufacturing plant and equipment, property taxes on plant, plant janitor’s wages etc.

Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the estimated overhead cost by an estimated quantity of allocation base.

Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Direct labor hours, machine hours, direct labor cost etc.

1.

(a.):

To Compute: Chance Realtor’s hourly direct labor cost rate.

Answer 7

Chapter 19, Problem E19.27E

To determine

Direct Labor Cost: Direct Labor Cost is a direct manufacturing cost that is incurred in the production of goods or provision of services.

Manufacturing Overhead: Manufacturing overhead refers to indirect costs that are incurred in the factory, other than direct materials costs and direct labor costs. Some of the examples of manufacturing overhead are depreciation on manufacturing plant and equipment, property taxes on plant, plant janitor’s wages etc.

Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the estimated overhead cost by an estimated quantity of allocation base.

Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Direct labor hours, machine hours, direct labor cost etc.

1.

(a.):

To Compute: Chance Realtor’s hourly direct labor cost rate.

Answer 8

To determine

(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

Answer 9

To determine

(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

Answer 10

To determine

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

Answer 11

To determine

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

Answer 12

To determine

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

Answer 13

To determine

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 19 - Prob. 1QC Ch. 19 - When a manufacturing company uses direct...Ch. 19 - When a manufacturing company uses indirect...Ch. 19 - When a manufacturing company uses direct labor, it...Ch. 19 - What is Gell's predetermined overhead allocation...Ch. 19 - What is Gell's actual manufacturing overhead cost?...Ch. 19 - How much manufacturing overhead would Gell...Ch. 19 - What entry would Gell make to adjust the...Ch. 19 - A manufacturing company completed work on a job....Ch. 19 - Prob. 10QC

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(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

Want to see the full answer?

Chapter 19 Solutions

Concept explainers

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(b.) To Compute: Chance Realtor’s predetermined overhead allocation rate.

2. To Compute: The predicted cost of the Maynard Manufacturing job.

3. To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.

Want to see the full answer?

Chapter 19 Solutions

(b.)

To Compute: Chance Realtor’s predetermined overhead allocation rate.

2.

To Compute: The predicted cost of the Maynard Manufacturing job.

3.

To find out: How much Chance should bid for the Maynard Manufacturing job, if he wants to earn a profit that equals 25% of the job’s cost.