BFAR Company used a predetermined overhead rate last year of P2 per direct labor hour, based on an estimate of 87,500 direct laborhours to be worked during the year. Actual costs and activity during the year were:Actual manufacturing overhead cost incurred ........... P176,500Actual direct labor hours worked ........... 90,000Compute the under- or overapplied overhead.Encode the value as is if underapplied. Encode the answer as a negative amount if overapplied.

Name: BFAR Company used a predetermined overhead rate last year of P2 per d
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Description: BFAR Company used a predetermined overhead rate last year of P2 per direct labor hour, based on an estimate of 87,500 direct laborhours to be worked during the year. Actual costs and activity during the year were:Actual manufacturing overhead cost i

Overhead refers to the costs or the expenses which are linked with running the business and it could…

Business

Accounting

BFAR Company used a predetermined overhead rate last year of P2 per direct labor hour, based on an estimate of 87,500 direct labor hours to be worked during the year. Actual costs and activity during the year were: P176,500 Actual manufacturing overhead cost incurred. Actual direct labor hours worked .......... 90,000 Compute the under- or overapplied overhead. Encode the value as is if underapplied. Encode the answer as a negative amount if overapplied.

BFAR Company used a predetermined overhead rate last year of P2 per direct labor hour, based on an estimate of 87,500 direct labor hours to be worked during the year. Actual costs and activity during the year were: P176,500 Actual manufacturing overhead cost incurred. Actual direct labor hours worked .......... 90,000 Compute the under- or overapplied overhead. Encode the value as is if underapplied. Encode the answer as a negative amount if overapplied.

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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Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $770,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 17,000 hours and 5,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.) A. $29.41 per labor hour B. $1.54 per labor hour C. $154.00 per machine hour D. $100.00 per machine hour
Manufacturing overhead was estimated to be OMR 200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was OMR 215,000, and actual labor hours were 21,000. Which of the following would be correct? a. Overhead is overapplied by OMR 15,000. bOverhead is underapplied by OMR 5,000. of the given answer is correct d . Overhead is underapplied by OMR 15,000 . e. Overhead is overapplied by OMR 5,000 .
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 $404,064 and direct labor hours would be 44,896. Actual factory overhead costs incurred were $436,743, and actual direct labor hours were 50,549. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? Oa. $18,198 overapplied Ob. $454,941 overapplied Oc. $18,198 underapplied Od. $50,877 underapplied
Subject:
estion Manufacturing overhead was estimated to be OMR 200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was OMR 215,000, and actual labor hours were 21,000. Which of the following would be correct? et ered O a. Overhead is overapplied by OMR 15,000. ed out of O b. None of the given answer is correct O c. Overhead is underapplied by OMR 15,000. O d. Overhead is underapplied by OMR 5,000. ion O e. Overhead is overapplied by OMR 5,000.
Note : A short answer please .
Jackson Company estimated that its manufacturing employees would work 87,000 direct labor hours during the current year. During the year, its manufacturing employees actually worked 71,500 direct labor hours. Actual manufacturing overhead costs amounted to $351,000 Jackson applies overhead cost on the basis of direct labor hours. The manufacturing overhead account was overapplied by $17.225 during the current year. Based on this information the predetermined overhead rate was Mutiple Choice $6.35 per lobor hour $475 per labor hour $524 per labor hour $515 per labor hour
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.
Osborn Manufacturing uses a predetermined overhead rate of $19.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period. Can you please help me with the following: Determine the amount of underapplied or overapplied manufacturing overhead for the period, then assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company’s gross margin? By how much?
d. Assume that the actual level of activity next year was 36,000 direct labor hours and that manufactur- ing overhead was $341,550. Determine the underapplied or overapplied manufacturing overhead at the end of the year. e. Describe two ways of handling any underapplied or overapplied manufacturing overhead at the end of the year. e. Describe two ways of handling any underapplied or overapplied manufacturing overhead at the end of the year.
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During March 2020, Polaro Corporation recorded P40,200 of costs related to factory overhead. overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that P40,900 would be incurred, and 5,000 direct labor hours would be worked. During March, 5,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied. (Round answers to the nearest whole dollar. Enter as a positive number if under applied. Enter as a negative number if over applied.)