Concept explainers
Winston Company estimates that the factory
a. Determine the total factory overhead amount applied. Round to the nearest dollar.
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b. Compute the over- or underapplied amount for the year. Enter the amount as a positive number.
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c.
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- Thomlin Company forecasts that total overhead for the current year will be $11,661,000 with 181,000 total machine hours. Year to date, the actual overhead is $7,739,000 and the actual machine hours are 98,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.arrow_forwardA company estimates its manufacturing overhead will be $882,760 for the next year. What is the predetermined overhead rate if the allocation base is 77,626 estimated machine hours? Round to the nearest hundredth, two decimals.arrow_forwardCavy Company estimates that the factory overhead for the following year will be $1,699,200. The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 28,800 hours. There are 1,660 machine hours for all of the jobs in the month of April. What amount will be applied to all of the jobs for the month of April?arrow_forward
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- Winston Company estimates that total factory overhead for the following year will be $1,050,300. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 38,900 hours. The total machine hours for the year were 54,200. The actual factory overhead for the year was $1,455,000. a. Determine the total factory overhead applied. Round to the nearest dollar. b. Compute the over- or underapplied factory overhead for the year. c. Journalize the entry to transfer the over- or underapplied factory overhead to Cost of Goods Sold. If an amount box does not require an entry, leave it blank.arrow_forwardCoolidge Company estimates that the factory overhead for the following year will be $196726. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 16142 hours. The machine hours for the month of April for all of the jobs were 11319. If the actual factory overhead for April totaled 332923, determine the over- or underapplied amount for the month. Select one:a. $17700b. $16142c. $137947d. $196726arrow_forwardFanning Corporation estimated its overhead costs would be $22,100 per month except for January when it pays the $207,120 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $229,220 ($207,120 + $22,100). The company expected to use 7,700 direct labor hours per month except during July, August, and September when the company expected 9,700 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company’s actual direct labor hours were the same as the estimated hours. The company made 3,850 units of product in each month except July, August, and September, in which it produced 4,850 units each month. Direct labor costs were $23.10 per unit, and direct materials costs were $10.30 per unit.Required Calculate a predetermined overhead rate based on direct labor hours. Determine the total allocated overhead cost for January, March, and August. Determine the…arrow_forward
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