Bret's RV Manufacturing uses job order costing to account for it's manufacturing costs. The company estimates total manufacturing overhead costs for the coming year to be $282,783. The total direct materials costs are estimated to be $784,555. The total direct labor hours are estimated to be 67.670 hours with direct labor costs estimated at $541,365. What is the Predetermined Overhead rate if the company applies overhead based on direct labor hours? O52.24% 36.04% O417.89% O23.93% 4,18%

Bret's RV Manufacturing uses job order costing to account for it's manufacturing costs. The company estimates total manufacturing overhead costs for the coming year to be $282,783. The total direct materials costs are estimated to be $784,555. The total direct labor hours are estimated to be 67.670 hours with direct labor costs estimated at $541,365. What is the Predetermined Overhead rate if the company applies overhead based on direct labor hours? O52.24% 36.04% O417.89% O23.93% 4,18%

Name: Bret's RV Manufacturing uses job order costing to account for it's ma
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Bret's RV Manufacturing uses job order costing to account for it's manufacturing costs. The company estimates total manufacturing overhead costs for thecoming year to be $282,783. The total direct materials costs are estimated to be $784,555. The to

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

Shipley 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 machine-hour The predetermined overhead rate is closest to: $8.30 per machine-hour $11.40 per machine-hour $5.20 per machine-hour O $3.10 per machine-hour 80,000 416,000 3.10
Answer a and b.
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $274,000 and direct labor hours to be 20,000. Actual overhead for the year was $320,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 24,400 direct labor hours, how much manufacturing overhead is applied to the company's jobs?
Company ABC uses a job-order costing system. The company uses direct labor hour as the allocation base for applying manufacturing overhead cost to individual jobs. At the beginning of the year, the company’s estimated manufacturing overhead cost is $1,000,000 and the estimated number of labor hours is 200,000. At the end of the year, the company found that the actual manufacturing overhead cost is $1,200,000 and the actual number of labor hours is 200,000. What is the predetermined overhead rate (POHR)? Did the company underapply or overapply the manufacturing overhead? What is the amount of overapplied or underapplied overhead?
The Crater Company uses predetermined overhead rates to allocate manufacturing overhead to products. The predetermined overhead rate is based on labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B Direct labor cost $ 83,000 $ 60,000 Manufacturing overhead $ 190,900 $ 117,300 Direct labor-hours 9,800 11,800 Machine-hours 4,800 13,800 What predetermined overhead rates would be used in Dept A and Dept B, respectively? Multiple Choice 116.72% and $9.30. 125% and $22.00. 230% and $8.50. 230% and $9.30.
Beamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year: Direct materials Direct labor Sales commissions Salary of production supervisor Indirect materials Advertising expense Rent on factory equipment $ 1,000 $ 3,000 $ 4,000 $ 2,000 S 400 $ 800 $ 1,000 Beamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be: Predetermined overhead rate = Estimated total manufacturing overhead = Estimated total amount of the allocation base = $3,400 1,000 machine- hours = $3.40 per machine-hour $6.80 per machine-hour $6.00 per machine-hour $3.00 per machine-hour O $3.40 per machine-hour
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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Job A319: Machine-hours Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job A319. The following data were recorded for this job: Direct labor-hours Direct materials Direct labor cost Milling 60 20 $ 655 $ 400 Milling 18,000 4,000 $ 113,400 $ 1.60 Customizing 10 60 $ 305 $ 1,200 Customizing 13,000 7,000 $ 64,400 $ 3.90 If the company marks up its manufacturing…
Frary Corporation is a building contractor. Frary tracks product costs in its job cost system and uses board feet to apply overhead to jobs. Frary has calculated an overhead rate of $61.52 per board foot and they have recorded the following information for job number E4641: Direct labor hours: 45 Direct labor rate: $17.14 Direct material: $5,784.00 Total board feet: 243 The total cost of job number E4641 is: Select one: A. $20,733.36 B. $6,555.30 C. $5,862.66 D. $9,323.70 E. $21,504.66
Ahlhelm Corporation has two production departments, Forming and Assembly. 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 Assembly 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 During the current month the company started and finished Job T924. The following data were recorded for this Job: Job T924: Machine-hours Direct labor-hours Direct materials Direct labor cost Multiple Choice $55,200 $27,000 The estimated total manufacturing overhead for the Assembly Department is closest to: $47,700 Forming 70 30 $870 $630 $82,200 Assembly 20 40 Forming…
Assume that RamCo applies overhead to jobs based on direct labor cost. Job A1 was started and completed and sold to customer for $500. The Job A1 cost sheet shows $200 for direct materials, $100 for direct labor, and $60 for overhead on its job cost sheet. Job A2 is still in process at year end and shows charges of $280 for direct materials and $150 for direct labor. How much overhead should be charged to Job A2 at year end? $0 $60 $90 $120 000
Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $3,960,000 (180,000 hours at $22/hour) and that factory overhead would be $1,480,000 for the current period. At the end of the period, the records show that there had been 160,000 hours of direct labor and $1,180,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate?
Gitano Products uses job-order costing and applies overhead cost to jobs based on direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate is based on a cost formula that estimated $129,000 of manufacturing overhead for an estimated allocation base of $86,000 direct material dollars to be used in production. The company provided the following data for the just completed year: Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent, building Raw Materials Work in Process Finished Goods Required: Beginning $ 28,000 $ 45,000 $ 71,000 $ 131,000 $82,000 $ 140,000 $ 8,400 $ 16,000 $ 11,000 $ 10,000 $ 38,000 Ending $ 13,000 $ 35,000 $ 58,000 1. Compute the predetermined overhead rate. 2. Compute the amount of underapplied or overapplied overhead. 3. Prepare a schedule of cost of goods manufactured. Assume all raw materials are used in…