FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Caple Corporation applies manufacturing
The predetermined overhead rate was based on how many estimated machine-hours?
Question 19 options:
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1,400 |
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2,101 |
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2,742 |
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1,460
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- Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 59,250 actual direct labor-hours and incurred $482,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 61,300 direct labor-hours during the year and incur $416,840 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:arrow_forwardGFOQKV276 Corporation applies manufacturing overhead on the basis of direct labor-hours. GFOQKV276 based its predetermined overhead rate for the upcoming year on total estimated overhead of $242,100 and 7,100 estimated direct labor-hours. (ID#90232) At the end of the year, GFOQKV276's actual manufacturing overhead for the year amounted to $243,600 and actual direct labor-hours were 5,400. (Baruch College Exam) Q) What was GFOQKV276's overhead for the year? (Round your intermediate calculations to 2 decimal places.) Multiple Choice O O O O $57,960 underapplied $57,960 overapplied $59,460 underapplied $59,460 overappliedarrow_forwardOsborn Manufacturing uses a predetermined overhead rate of $18.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $227,550 of total manufacturing overhead for an estimated activity level of 12,300 direct labor-hours. The company actually incurred $221,000 of manufacturing overhead and 11,800 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? 1. Manufacturing overhead 2. The gross margin would by byarrow_forward
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- 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?arrow_forwardSandler Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated machine hours 73,000 Estimated variable manufacturing overhead 3.49 per machine hour Estimated total fixed manufacturinf overhead 838,770 Required: Compute the company's predetermined overhead rate.arrow_forwardA manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 47,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?arrow_forward
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