Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machinehours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $225,000 and total machinehours of 45,000. During the year actual manufacturing overhead incurred was $258,750 and 47,600 machine hours were used.i. Calculate the predetermined overhead rate.ii. Calculate how much manufacturing overhead will be applied to production.iii. Is overhead over- or underapplied? By how much?iv. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?Edit Format Table12pt vParagraph vBIUA Tv .O words

Name: Blueberry Corp. uses a job order costing system with manufacturing ov
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Description: Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machinehours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $225,000 and total machinehours of 45

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Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $225,000 and total machine hours of 45,000. During the year actual manufacturing overhead incurred was $258,750 and 47,600 machine hours were us i. Calculate the predetermined overhead rate. ii. Calculate how much manufacturing overhead will be applied to production. iii. Is overhead over- or underapplied? By how much? iv. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased? Edit Format Table

Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $225,000 and total machine hours of 45,000. During the year actual manufacturing overhead incurred was $258,750 and 47,600 machine hours were us i. Calculate the predetermined overhead rate. ii. Calculate how much manufacturing overhead will be applied to production. iii. Is overhead over- or underapplied? By how much? iv. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased? Edit Format Table

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 7,800 76,000 Machine-hours 52,700 3,200 Total fixed manufacturing overhead cost $ 390,000 $ 425,000 Variable manufacturing overhead per machine-hour $ 3.00 0 Variable manufacturing overhead per direct labor-hour 0 $3.75 Required (see below for hints, if needed): 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct labor-hours 3 16 Machine-hours 89 6 Direct materials $ 730 $ 380 Direct labor…
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials Direct labor cost Machine-hours used $380 $ 270 39 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 50 units, what is the unit product cost for this job? 4. If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it have established for Job 400? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 152,000 $ 657,000…
5) Munist, Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Job T617: Machine-hours Direct labor-hours Direct materials Direct labor cost Forming S Avelin Davi S Forming 18,000 2,000 During the current month the company started and finished Job T617. The following data were recorded for this job: 99,000 www 2.10 Finishing 90 30 940 960 S Finishing The total job cost for Job T617 is closest to: (Round your intermediate calculations…
Hancock Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per The estimated total manufacturing overhead is closest to: O $273,000 $630,000 O $357,004 O $357,000 machine-hour 70,000 $ 357,000 S 3.90
Garst Manufacturing is working on two jobs. Cost is accumulated under a job-order costing system, and overhead is applied on the basis of direct labor hours. The company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period: (a) Used $10,000 of direct material on Project I and $6,800 of direct material on Project II. (b) Labor costs for the two jobs amounted to the following: Project I, $24,000 (2,000 hours); Project II, $44,000 (6,000 hours). (c) Project II was sold during the period for $120,000. The ending balance in Work in Process was: Multiple Choice X $34,000. $0. $46,800. $136,000.
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 20,000 20,000 Direct labor-hours 9000 10,000 Total fixed manufacturing overhead cost $ 70,000 $ 38,000 Variable manufacturing overhead per machine-hour $ 1.70 Variable manufacturing overhead per direct labor-hour $ 4.60 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Milling Customizing Machine-hours 50 10 Direct labor-hours 60 40 Direct materials $ 590 $ 160 Direct…
XYZ Company has two production departments, Machining and Customizing. The company uses job - order costing system and computes a predetermined overhead rate (POHR) in eld department. The Machining Department's POHR is based on machine hours (Mhes) and the Customizing Department's POHR is based on direct labor - hours (DLH). At the beginning of the current year the company estimated the following yearly Mhrs and DLH to be used in each department 20,000 Mhrs and 15,000 DLH in the Marching Department 10,000 Mhes and 25,000 DLH in the Customizing Department. The company also estimated the yearly total manufacturing overhead cost in each department OMR150,000 in the Machining Department and OMR100.000 in the Customizing Department. During the year Job XY incurred the following number of hours in each department 50 Mhrs and 30 DLH in the Machining Department and 80 Mhrs and 50 DUA Customizing Department What is the total amount of manufacturing overhead that should? be applied to lob…
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost Direct labor-hours Machine-hours $ 216 $ 327 15 5 Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume…
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 16,000 11,000 Direct labor-hours 18,000 6,000 Total fixed manufacturing overhead cost $ 92,800 $ 28,800 Variable manufacturing overhead per machine-hour $ 1.20 Variable manufacturing overhead per direct labor-hour $ 5.00 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Milling Customizing Machine-hours 50 40 Direct labor-hours 60 30 Direct materials $ 430 $ 180 Direct labor cost $ 800 $ 540…
Jurica Corporation has two production departments, Forming and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming Customizing Machine-hours 19,000 15,000 Direct labor-hours 4,000 6,000 Total fixed manufacturing overhead cost $ 100,700 $ 63,000 Variable manufacturing overhead per machine-hour $ 2.00 Variable manufacturing overhead per direct labor-hour $ 3.90The predetermined overhead rate for the Customizing Department is closest to: $3.90 per direct labor-hour $14.40 per direct labor-hour $4.55 per direct labor-hour $10.50 per direct labor-hour