At the beginning of the year, Vaughn Manufacturing estimates annual overhead costs to be $2400000 and that 500000 machinehours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours forthe year was 295000 hours is$1416000.$4067797.$1680000.O $2400000.

The question is based on the concept of Cost Accounting.

Answered: At the beginning of the year, Vaughn…

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 Winchester Company estimates that its overhead costs will amount to $523,600 and the company's manufacturing employees will work 77,000 direct labor hours during the current year. If actual overhead costs for the year amounted to $572,000 and actual labor hours amounted to 82,000, then overhead would be: Multiple Choice underapplied by $14,400. overapplied by $48,400. underapplied by $48,400. overapplied by $14,400.
Cullumber Company estimates that annual manufacturing overhead costs will be $768,000. Estimated annual operating activity bases are: direct labor cost $588,800, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $769,280 and the actual direct labor cost for the year was $583,680. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000. Cullumber applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount. (Round predetermined overhead rate to 2 decimal places, e.g. 15.25 and all other answers to O decimal places, e.g. 1,525.) Predetermined overhead rate $ Manufacturing overhead applied $ $ per direct labor hour
The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated that 40,000 units will be produced at a material costs of P1,600,000 and will require 100,000 direct labor hours at an estimated cost of P2,500,000. The machine will run about 320,000 hours. What is the predetermined factory overhead rate based on direct labor cost? * P7.8125 156.25% 100.00% O P25.00 O P62.50
Company XYZ uses machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 190,000 hours. The estimat variable overhead is $9 per hour and the estimated fixed overhead costs are $152,000. Calculate the predetermined overhead rate. Select one: O a. $10.80 Ob. $9.80
The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated that 40,000 units will be produced at a material costs of P1,600,000 and will require 25,000 direct labor hours at an estimated cost of P2,500,000. The machine will run about 320,000 hours. What is the predetermined factory overhead rate based on direct labor hours? * 100.00% O P7.8125 O P100.00 O 156.25% O P25.00
Fill in the blanks: Sol Corporation has a total estimated factory overhead cost of P500,000.00 for the next year. It is estimated that 50,000 units will be manufactured at a direct material cost of P1,000,000.00. It will require 25,000 machine hour and 100,000 direct labor hours at a cost of P400,000.00 Compute the predetermined overhead rates based on: Direct labor Costs Direct labor hours Machine Hours Direct Material Costs Physical output/ unit produced a b C d ere to search 10X 58
Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates that total direct labor hours to be operated next year are 250,000 hours. The estimated variable overhead is OMR10 per hour and the estimated fixed overhead costs are OMR750,000. Calculate the predetermined overhead rate. Select one: a. OMR3.00 b. OMRO.08 C. None of the answers given d. OMR14.00 OMB13.00
Captain Pickles Pet Products computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it estimated that 40,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated P586,000 manufacturing overhead expenses for the coming period. Captain Pickles’s actual manufacturing overhead for the year was P713,400 and its actual total direct labor was 41,000 hours. Compute the company’s predetermined overhead rate for the year. P14.29 per direct labor hour P14.65 per direct labor hour P17.84 per direct labor hour P17.40 per direct labor hour
Kingsley Products estimated that direct labor for the year would be 64,000 hours. The company also estimated that the fixed overhead cost for the year would be $160,000. They further estimated the variable overhead cost to be $4.00 per direct labor-hour. All overhead at Kingsley Products is applied on the basis of direct labor-hours. During the year, fixed overhead costs were exactly as planned ($160,000). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as $18,000. Required: How many direct labor-hours were worked during the period?
Winston Company estimates that total factory overhead for the following year will be $880,400. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 28,400 hours. The actual total machine hours for the year were 54,800 hours. The actual factory overhead for the year was $1,723,000. Enter the amount as a positive number. Question Content Area a. Determine the total factory overhead applied. Round to the nearest dollar.fill in the blank b. Compute the over- or underapplied factory overhead for the year.fill in the blank 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. Debit Credit Cost of goods sold Factory Overhead
Custom Engines Company has the following estimated costs for the upcoming year: Direct labor costs $62,800 Direct materials used $25,600 Salary of factory supervisor $37,800 Sales commissions $8300 Heating and lighting costs for factory $22,900 Depreciation on factory equipment $5500 Advertising expense $33,100 The company estimates that 2000 direct labor hours will be worked in the upcoming year, while 2800 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour is closest to
s

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