Company has gathered the following information:Variable manufacturing overhead costs$12,240Fixed manufacturing overhead costs$9,270Normal production level in labour hours9,000Standard labour hours9,500During the year, 3,230 units were produced, 10,600 hours were worked, and the actual manufacturing overhead was $20,200. Actualfixed overhead totalled $9,290.Bonita applies overhead based on direct labour hours.(a)Calculate the total, fixed, and variable predetermined overhead rates. (Round calculations and final answer to 2 decimalplaces, e.g. 15.25.)Fixed predetermined ovehead rate$per DL hourVariable predetermined ovehead rate $per DL hourTotal predetermined ovehead rate$per DL hour

The objective of the question is to calculate the total, fixed, and variable predetermined overhead…

Answered: Company has gathered the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $9.00 per pound $ 36.00 Direct labor: 3 hours at $12 per hour 36.00 Variable overhead: 3 hours at $8 per hour 24.00 Total standard variable cost per unit $ 96.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 230,000 Sales salaries and commissions $ 160,000 $ 15.00 Shipping expenses $ 6.00 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was…
[The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 54,000 machine-hours would be required for the period’s estimated level of production. It also estimated $1,000,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Molding Fabrication Total Machine-hours 23,000 31,000 54,000 Fixed manufacturing overhead cost $ 760,000 $ 240,000 $ 1,000,000 Variable manufacturing overhead cost per machine-hour $ 4.00 $ 1.00 During the year, the…
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Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Standard Hours 2 hours Fixed manufacturing overhead During the most recent period, the following additional information was available: The total actual fixed overhead cost was $275,000. • The budgeted amount of fixed overhead cost was $285,000. 46,000 direct labor-hours were actually used to produce 24,120 units. How much was the fixed overhead volume variance? Multiple Choice $14,440 U Standard Cost $ 12.00
Snyder Company produced 85,600 units during its first year of operations and sold 81,750 at $22.30 per unit. The company chose practical activity-at 85,600 units-to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials Direct labor $504,184 121,552 Expected and actual variable overhead 379,208 Expected and actual fixed overhead 460,528 Requlred: If required, round unit cost answers to the nearest cent. 1. Calculate the unit cost and the cost of finished goods inventory under absorption costing. Unit Cost Cost of finished goods inventory 2 Calculate the unit cost and the cost of finished goods inventory under variable costing. Unit Cost Cost of finished goods inventory
Luthan Company uses a plantwide predetermined overhead rate of $22.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $272,400 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $269,000 and 10,800 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
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A) Explain in detail how a single, plant-wide factory overhead allocation rate is established (i.e., what is the formula?). Pate Company uses a job order cost accounting system. The company's management estimated that they would incur 250,000 hours of direct labor hours at a cost of $12.00 per hour, totaling $3,000,000; they also estimate that total factory overhead costs would be $1,500,000 for the current period. At the end of the period, the records show that the actual number of direct labor hours amounted to 248,000. The records also showed that actual (not the allocated amount) overhead costs amounted to $1,520,000. (B) Using the preceding example, calculate the pre-determined factory overhead allocation rate that was used, assuming that direct labor hours were used as the base. (C) Did Pate Company OVER-allocate or UNDER-allocate factory overhead for the period?
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Attire, Inc., is a jeans manufacturing company. Attire uses a plantwide rate based on direct labor hours to assign its overhead costs. The company has the following estimated and actual data for the coming year: Estimated overhead $1,000,000 Expected activity 250,000 Actual activity (direct labor hours) 265,000 Units produced 500,000 Attire applies overhead cost to each unit by using predetermined plantwide overhead rate based on direct labor hours. Calculate the overhead cost per unit of jeans produced by Attire. a.$4.24 b.$2.65 c.$4.00 d.$2.12
Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours Job Bravo Direct labor-hours Machine-hours Assembly $1,400,000 70,000 28,000 Assembly Fabrication 15 7 7 10 Fabrication Total $1,680,000 $3,080,000 Total 22 17 42,000 140,000 112,000 168,000 Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied…
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $150,000, $375,000, and $87,500, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750. Compute the overhead rate for each activity.

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