Gibson, Incorporated estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation Supplies Materials handling Property taxes Production setup Rent Maintenance Supervisory salaries $ 190,100 20,500 32,100 14,500 19,500 44,100 38,500 238,700 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 218,000 and for machines were 130,000. Required a. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 145,000. Note: Do not round intermediate calculations. a. Predetermined overhead rate b. Applied manufacturing overhead per machine hour
Gibson, Incorporated estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation Supplies Materials handling Property taxes Production setup Rent Maintenance Supervisory salaries $ 190,100 20,500 32,100 14,500 19,500 44,100 38,500 238,700 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 218,000 and for machines were 130,000. Required a. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 145,000. Note: Do not round intermediate calculations. a. Predetermined overhead rate b. Applied manufacturing overhead per machine hour
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 15E: The books of Petry Products Co. revealed that the following general journal entry had been made at...
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