Treatment of Manufacturing Overheads : The Manufacturing overheads are indirect cost not directly identified and assigned to product or cost unit rather applied to these cost units on the basis of pre-determined basis. Therefore, there is almost every chance of difference between actual overheads incurred and overheads applied to production or cost unit. For the treatment of Manufacturing overheads, a separate manufacturing overheads account is maintained which is debited for the amount actually incurred while processing and credited for the amount applied on cost unit. The difference between the two amounts may be under-over applied overheads. When the debit side of manufacturing account is more than the credit, there will be under applied overheads (as actual amount incurred is more than overheads applied) and when there is credit balance in account, it is over-applied overheads (as overheads applied is more than actual overheads). Requirement1: The Actual manufacturing overheads incurred of Edith Corp.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem S19.10SE

To determine

Treatment of Manufacturing Overheads:

The Manufacturing overheads are indirect cost not directly identified and assigned to product or cost unit rather applied to these cost units on the basis of pre-determined basis. Therefore, there is almost every chance of difference between actual overheads incurred and overheads applied to production or cost unit.

For the treatment of Manufacturing overheads, a separate manufacturing overheads account is maintained which is debited for the amount actually incurred while processing and credited for the amount applied on cost unit. The difference between the two amounts may be under-over applied overheads.

When the debit side of manufacturing account is more than the credit, there will be under applied overheads (as actual amount incurred is more than overheads applied) and when there is credit balance in account, it is over-applied overheads (as overheads applied is more than actual overheads).

Requirement1:

The Actual manufacturing overheads incurred of Edith Corp.

To determine

Requirement 2:

The amount of overheads applied during the period.

To determine

Requirement3:

The Amount of under/ Over applied overheads amount.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Given below are the account balances for Redstone Corp: . Gross sales: $150,000 • Sales returns and allowances: $6,000 • Selling expenses: $15,000 • Cost of goods sold: $65,000 • Interest expense: $4,000 How much is the gross profit margin?

Techtronic Inc., a manufacturing company, has just completed an order that Micro Solutions placed for 150 gadgets. The direct material, purchased parts, and direct labor costs for the Micro order are as follows: • Cost of direct materials: $54,000 • Cost of purchased parts: $30,000 • Direct labor hours: 300 hours • • Average direct labor pay rate: $18 per hour Overhead costs were applied at a plant wide overhead rate of 250 percent of direct labor dollars. Compute the total cost of the Micro order.

BlueSky Corp has total debt of $250 million and 40 million shares outstanding with a market price of $5.50 per share. Calculate BlueSky's market debt-equity ratio. A) 1.52 B) 0.88 C) 1.14 D) 2.15