College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Textbook Question
Chapter 26, Problem 4MC
When direct labor hours for Job 101 are 30 and the predetermined factory
- (a) $250
- (b) $500
- (c) $150
- (d) It cannot be determined.
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Students have asked these similar questions
Using the following information, calculate the amount of manufacturing
overhead to apply if the company uses direct labor hours to allocate
overhead.
Estimated Annual Overhead Costs $227,327
Estimated Direct Labor Costs 87,282
Estimated Direct Labor Hours 85,869
Actual Direct Labor Costs 65,700
Actual Direct Labor Hours 69,137
Do not round intermediate calculations, round your final answer to two
decimal places.
Refer to the previous question. Give the journal entry to adjust the Manufacturing Overhead account for overallocated or underallocated overhead.
Reference Question.
If a company incurred $5,250 in actual overhead costs and allocated $5,575 to jobs, was the overhead overallocated or underallocated? By how much?
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $233,125 and direct labor hours would be 46,625. Actual factory overhead costs incurred were $247,123, and actual direct labor hours were 51,484. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
a.$24,295 underapplied
b.$257,420 overapplied
c.$10,297 underapplied
d.$10,297 overapplied
Chapter 26 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 26 - Prob. 1TFCh. 26 - Prob. 2TFCh. 26 - Prob. 3TFCh. 26 - Prob. 4TFCh. 26 - Prob. 5TFCh. 26 - Prob. 1MCCh. 26 - Prob. 2MCCh. 26 - When total anticipated factory overhead is 500,000...Ch. 26 - When direct labor hours for Job 101 are 30 and the...Ch. 26 - Prob. 5MC
Ch. 26 - Prob. 1CECh. 26 - Prob. 2CECh. 26 - Prob. 3CECh. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQCh. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 14RQCh. 26 - Prob. 15RQCh. 26 - COST OF GOODS SOLD SECTION The following...Ch. 26 - SCHEDULE OF COST OF GOODS MANUFACTURED The...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD...Ch. 26 - JOURNAL ENTRIES FOR FACTORY OVERHEAD Huang Company...Ch. 26 - PREDETERMINED FACTORY OVERHEAD RATE Millerlile...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, OVERHEAD, AND...Ch. 26 - SCHEDULE OF COST OF GOODS MANUFACTURED AND COST OF...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD...Ch. 26 - JOB ORDER COSTING TRANSACTIONS Stonestreet...Ch. 26 - JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED...Ch. 26 - COST OF GOODS SOLD SECTION The following...Ch. 26 - SCHEDULE OF COST OF GOODS MANUFACTURED The...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD...Ch. 26 - JOURNAL ENTRIES FOR FACTORY OVERHEAD Bandy Company...Ch. 26 - PREDETERMINED FACTORY OVERHEAD RATE Marston...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, OVERHEAD, AND...Ch. 26 - SCHEDULE OF COST OF GOODS MANUFACTURED AND COST OF...Ch. 26 - Prob. 8SPBCh. 26 - Prob. 9SPBCh. 26 - Prob. 10SPBCh. 26 - Prob. 1MYWCh. 26 - Forester Manufacturing Company uses a job order...Ch. 26 - Prob. 1CP
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- Cavy Company estimates that total factory overhead costs will be $1,011,028 for the year. Direct labor hours are estimated to be 100,700. a. Â Determine the predetermined factory overhead rate. Round your answer to the nearest cent.$fill in the blank 8b99eb02a009f9f_1 b. Â Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,200 and Job 999 if the amount of direct labor hours is 2,800. Job 567 $fill in the blank 8b99eb02a009f9f_2 Job 999 $fill in the blank 8b99eb02a009f9f_3 c. Â Prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate. Â Â fill in the blank aa9138f9703b038_2 Â Â Â Â fill in the blank aa9138f9703b038_4arrow_forwardIf a company incurred $5,250 is actual overhead costs and allocated $5,575 to jobs, was the overhead over allocated or underallocated? By how much? Refer to previous question. Give journal entry to adjust the manufacturing overhead account for over allocated or underallocated overheadarrow_forwardThe predetermined overhead rate per direct labor hour to be used to apply total overhead to individual jobs next year is: P3.70 P3.88 P3.36 P3.50arrow_forward
- If a company incurred $5,250 in actual overhead costs and allocated $5,575 to jobs, was the overhead over-allocated or under-allocated? By how much?arrow_forwardA manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $329,900 and direct labor hours would be 43,500. Actual manufacturing overhead costs incurred were $308,200, and actual direct labor hours were 51,900. What is the predetermined factory overhead rate per direct labor hour?  a. $6.07  b. $11.38  c. $7.58  d. $9.10arrow_forwardThe actual overhead for a company is $79,534. Overhead was based on 7,000 direct labor hours and was $2,534 underapplied for the year. A. What is the overhead application rate per direct labor hour? $fill in the blank 340074ff501f023_1 per direct labor hour B. What is the journal entry to dispose of the underapplied overhead? If an amount box does not require an entry, leave it blank.   fill in the blank fill in the blank   fill in the blank fill in the blankarrow_forward
- A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $466,920 and direct labor hours would be 46,692. Actual factory overhead costs incurred were $496,253, and actual direct labor hours were 51,693. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? O $516,930 overapplied Ob. $50,010 underapplied Oc. $20,677 overapplied Od. $20,677 underappliedarrow_forwardValencia Company uses the job order cost system of accounting. Job 915 has material cost P1,180 and direct labor cost P1,040. The factory overhead is applied at 180% of direct labor costs. What is the total cost of Job 915 when completed? * O P1,872 O P2,220 O P4,092 O P2,400 O None of the abovearrow_forwardCavy Company estimates that total factory overhead costs will be $572,128 for the year. Direct labor hours are estimated to be 94,100. a.  Determine the: 1.  Predetermined factory overhead rate. Round your answer to the nearest cent.$fill in the blank acece905b02a058_1 per labor hour 2.  Amount of factory overhead applied to Job 345 if the amount of direct labor hours is 1,200 and Job 777 if the amount of direct labor hours is 3,300. Job 345 $fill in the blank acece905b02a058_2 Job 777 $fill in the blank acece905b02a058_3  b.  Journalize the entry to apply factory overhead for April, assuming Jobs 345 and 777 are the only jobs in production during the month. If an amount box does not require an entry, leave it blank.   - Select - - Select -   - Select - - Select -    - Select - - Select -arrow_forward
- A. What is (1) overapplied factory overhead and (2) underapplied factory overhead? B. If the factory overhead account has a debit balance, was factory overhead underapplied or overapplied? C. If the factory overhead account has a credit balance at the end of the first month of the fiscal year, where will the amount of this balance be reported on the interim balance sheet?arrow_forwardInez has the following information relating to Job AA5. Direct material cost was $200,000, direct labor was $36,550, and overhead applied on the basis of direct labor hours was $73,100. What was the predetermined overhead rate using the labor rate of $17 per hour?arrow_forwardIf a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has 100,000 machine hours, would there be an under applied or over applied overhead?arrow_forward
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