Chapter 7, Problem 2P

Get correct answer with accounting question

Please provide the correct answer to this general accounting problem using valid calculations.

Accurate Answer

Please explain the solution to this general accounting problem with accurate explanations.

I need help finding the accurate solution to this financial accounting problem with valid methods.

Benz Corporation applies overhead costs to jobs based on direct labor costs. Job P, partially completed at year-end, shows charges of $4,250 for direct materials and $7,200 for direct labor. A previously completed Job Q had $12,500 in direct labor with $8,750 in overhead costs. a. Should any overhead cost be applied to Job P at year-end? b. How much overhead cost should be applied to Job P?

Can you explain the correct approach to solve this general accounting question?

Solve this

Laxmi Ltd. estimates that its employees will utilize 225,000 machine hours during the coming year. Total overhead costs are estimated to be $5,625,000 and direct labor hours are estimated to be 150,000. Actual machine hours are 210,000. Actual labor hours are 140,000. If Laxmi Ltd. allocates overhead based on machine hours, what is the predetermined manufacturing overhead rate? Need help