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
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
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

See similar textbooks

Similar questions

Hyu Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 56,000 labor-hours. The estimated variable manufacturing overhead was $3.18 per labor-hour and the estimated total fixed manufacturing overhead was $1,237,160. The actual labor-hours for the year turned out to be 56,600 labor-hours. The predetermined overhead rate for the recently completed year was closest to: Multiple Choice $22.49. $3.18. $25.01. $25.27.
Osborn Manufacturing uses a predetermined overhead rate of $18.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $240,030 of total manufacturing overhead for an estimated activity level of 12,700 direct labor-hours. The company actually incurred $237,000 of manufacturing overhead and 12,200 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. 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?
At the beginning of the year, Vaughn Manufacturing estimates annual overhead costs to be $2400000 and that 500000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 295000 hours is $1416000. $4067797. $1680000. O $2400000.
Sterner Company computes its predetermined overhead application rate using direct labor hours as the activity base. Estimated and actual overhead costs and direct labor hours for the year were as follows:Estimated ActualManufacturing overhead costs . . . . . . . . . . . . $126,000 $118,020Direct labor hours . . . . . . . . . . . . . . . . . . . . . . 10,000 9,200Based on this information, manufacturing overhead wasa. underapplied by $2,100.b. underapplied by $3,420.c. overapplied by $3,420.d. overapplied by $5,580.e. none of the above.
The allocation base of the company is machine-hours and the estimated amount of theallocation base for the upcoming year is 43,000 machine-hours. In addition, the actual activityfor the year is 42,600 machine-hours. All of the manufacturing overhead is fixed and is P848,820per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for theyear as well as the actual amount of manufacturing overhead for the year. Job F3, which required310 machine-hours, is one of the jobs worked on during the year. 1. Determine the predetermined overhead rate if the predetermined overhead rate is based on theestimated amount of the allocation base. _______________
Carter Company expected to incur $10,350 in manufacturing overhead costs and use 4,500 machine hours for the year. Actual manufacturing overhead was $9,500 and the company used 4,700 machine hours. 9. Calculate the predetermined overhead allocation rate using machine hours as the allocation base. 10. How much manufacturing overhead was allocated during the year? O 9. Calculate the predetermined overhead allocation rate using machine hours as the allocation base. Predetermined overhead allocation rate per machine hour
Catherine Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the company worked 57,000 actual direct labor hours and incurred ₱345,000 of actual manufacturing overhead cost. The Company had estimated that it would work 55,000 direct labor hours during the year and incur ₱330,000 of manufacturing overhead cost. The company's manufacturing overhead cost for the year was: A. Overapplied by ₱3,000 B. Overapplied by ₱15,000 C. Underapplied by ₱3,000 D. Underapplied by ₱15,000
A company absorbs factory overheads at a rate of N$25 per direct labour. At the beginning of the year the company estimated that the direct labour hours were 10000 hours. During the year the actual direct rate labour hours and actual manufacturing overheads costs incurred were 12000 hours and N$350000 respectively. The under/over factory overheads cost the period was?
A company uses a predetermined manufacturing overhead rate of 80% based on direct labor dollars. During the year, $538,112 factory labor was incurred of which $124,506 was indirect labor. How much manufacturing overhead was applied? (Round your answer to the nearest whole dollar and do not use dollar signs in your answer.)
1.
XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During the year it incurred P345,000 dollars of actual overhead, but it planned to incur P360,000 of overhead. The company applied P363,000 of overhead during the year. How many actual direct labor hours did the company incur?
Ammons Corporation allocates manufacturing overhead using a predetermined manufacturing overhead rate of $1.50 per direct labor hour (DLH), and had actual manufacturing overhead costs for the most recent year of $29,500. Actual direct labor cost was $19 per hour and estimated direct labor cost was $17 per direct labor hour. At the end of the year, Ammons Corporation found it had over-allocated manufacturing overhead by $1,250. How many direct labor hours (DLH) were worked in total during the year? Select one: a. 18,833 DLH b. 20,500 DLH c. 1,552 DLH d. 1,735 DLH e. 19,667 DLH