Budgeted overhead £100,000 Actual overhead £90,000 Budgeted labour hours 20,000 Actual labour hours 21,000 Calculate the amount of under/over recovery of overheads. A Over absorption £15,000 B Over absorption £5,000 C Under absorption £15,000 D Under absorption £5,000

Budgeted overhead £100,000 Actual overhead £90,000 Budgeted labour hours 20,000 Actual labour hours 21,000 Calculate the amount of under/over recovery of overheads. A Over absorption £15,000 B Over absorption £5,000 C Under absorption £15,000 D Under absorption £5,000

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Description: Budgeted overhead £100,000Actual overhead £90,000Budgeted labour hours 20,000Actual labour hours 21,000Calculate the amount of under/over recovery of overheads.A Over absorption £15,000B Over absorption £5,000C Under absorption £15,000D Under

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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QUESTION 3 A company absorbs overheads based on machine hours. Machine hours were budgeced co be 11,250 and budgeted overheads were £258,750. The actual results were 10,980 machine hours with averheads of £254,692. Were overheads over or under absorbed and by how much? Oa Under absorbed by £2.152 Ob.Over absorbed by £4,058 O. Under absorbed by E4,058 Od. Over absorbed by £2,152 QUESTION 4 A firm has a high level of inventory turnover and uses the Firar in First Out (FIFO) inventory valuation method. In a period of rising purchase prices what would the value of the dosing inventory units be? Oa Based on the pnces of the first inems recerved Ob. Much iower than current purchase prices Oc The average of all goods purchased in the period O d. Close to current purchase prices
Operating Department Service Department A B 1 2 Total Overhead costs £100,000 £93,100 £62,100 £237,200 £257,400 £749,800 855 Number of employees Square feet of space occupied Hours of press time 55 40 160 360 240 7,500 38,000 30,000 172,400 90,000 12,900 19,000 95,000 60,000 The company allocates service department costs by the direct method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: How much overhead cost would be allocated to each operating department? (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Service Departments Operating Departments 2 Total Overhead costs Allocation: Department A: Department B: Department C: Total overhead costs after allocations
Direct materials issued to production $170,000Indirect materials issued to production $45,000Other manufacturing overhead $255,000Overhead allocated $240,000Direct labour costs $80,000 Is the manufacturing overhead under- or over-applied? By how much?
1m 2 A $ Budgeted overhead costs before any 3 interdepartment cost allocations Support work supplied by AS (budgeted head count) 4 Support work supplied by IS 5 (budgeted computer time) B AS SUPPORT 0 C 10% IS D 20% OPERATING GOVT 600,000 $1,200,000 $8,725,000 $ 12,540,000 $23,065,000 48% E 36% CORP 32% Total 54% 100% 100%
Step-down method (IS first) Dialog content starts Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $390,000 $3,600,000 $8,700,000 $12,470,000 $25,160,000 Allocation of IS costs 360,000 (3,600,000) 1,296,000 1,944,000 $750,000 $0 Allocation of AS costs (750,000) 450,000 300,000 Total budgeted overhead of operating departments $0 $10,446,000 $14,714,000 $25,160,000 Reference Dialog content starts GOVT CORP Direct method $1,674,000 $2,316,000 Step-down (AS first) 1,658,400 2,331,600 Step-down (IS first) 1,746,000 2,244,000
Question A21 Alders Ltd use an absorption costing and have calculated an overhead absorption rate based on units of output. The following information is relevant to the last quarter: Budgeted overhead was £231,000 Actual overhead was £235,000 Actual output was 11,000 units Budgeted output was 10,500 units What was the level of under or over absorption in the last quarter? A £7,000 over absorbed B £4,000 under absorbed C £4,000 over absorbed D £7,000 under absorbed
Step-down method (IS first) Dialog content starts Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $390,000 $3,600,000 $8,700,000 $12,470,000 $25,160,000 Allocation of IS costs 360,000 (3,600,000) 1,296,000 1,944,000 $750,000 $0 Allocation of AS costs (750,000) 450,000 300,000 Total budgeted overhead of operating departments $0 $10,446,000 $14,714,000 $25,160,000 Reference Dialog content starts GOVT CORP Direct method $1,674,000 $2,316,000 Step-down (AS first) 1,658,400 2,331,600 Step-down (IS first) 1,746,000 2,244,000 Requirement 1b. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use repeated iterations. (Round your final answers to the nearest whole dollar.…
Actual variable overhead $10,000 Budgeted variable overhead $12,000 Budgeted production Actual production Actual hours Standard time for 1 unit 500 units 450 units 200 30 minutes Among the given options, determine variable overhead efficiency varia a. $1,200 favorable. b. $1,200 unfavorable c. $1,250 favorable d. $2,400 favorable Answer A B Submit O O O O
Question Content Area Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 900 1,000 1,100 Variable overhead $3,600 $4,000 $4,400 Fixed overhead 5,200 5,200 5,200 Total overhead $8,800 $9,200 $9,600 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $9,200/4,000 = $2.30 per direct labor hour Direct materials are $69.00 per unit. Direct labor is $21.50 per hour. Prepare a flexible budget for overhead based on the above data. Flexible Budget 900 1,000 1,100 Direct Material $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Direct Labor fill in the blank 4 fill in the blank 5 fill in the blank 6 Variable Overhead fill in the blank 7 fill in the blank 8 fill in the blank 9 Fixed Overhead fill in the blank 10 fill in the blank 11 fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
View Policies Current Attempt in Progress A company expected its annual overhead costs to be $692920 and machine hours to equal 101900 hours. Actual overhead was $744100, and actual machine hours totalled 97400 hours. How much is the company's predetermined overhead rate to the nearest cent, assuming overhead is applied based on machine hours? O $7.30 O $6.80 O $7.64 O $7.11 e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Question 12 Stingrays Company applies overhead to products using a predetermined overhead rate based on machine hours. The tolong pertanto the ar Budgeted manufacturing overhead: $45,000 Actual manufacturing overhead: $51,000 Budgeted machine hours: 200 Actual machine hours: 150 How much is overhead applied to products during the year? O $60,000 O $38,250 O $33,750 O $51,000
Assume the following information in the chart: Security Dept. Cafeteria Dept. 1,000 square feet 4,000 square feet 10 employees 6 employees $100,000 cost $200,000 cost Production B Dept. 3,000 square feet 50 employees $300,000 cost Using the reciprocal services method, what is the total security costs before being allocated over to the production departments? $125,000 $110,000 $120,000 O $100,000 Production A Dept. 3,000 square feet 40 employees $400,000 cost