Homework Help is Here – Start Your Trial Now!
Business
Accounting
E2-5 (Algo) Calculating Predetermined Overhead Rate and Applied Overhead [LO 2-3] Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts $ 341,800 Factory machinery depreciation 54,000 Factory supervisor salaries 140,000 Factory direct labor 235,121 Factory supplies 44,400 Factory property tax 25,250 Advertising cost 27,000 Administrative salaries 48,000 Administrative-related depreciation 19,200 Total expected costs $ 934,771 Required: Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.31 per hour. Determine the amount of applied overhead if 19,200 actual hours are worked in the upcoming year.

E2-5 (Algo) Calculating Predetermined Overhead Rate and Applied Overhead [LO 2-3] Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts $ 341,800 Factory machinery depreciation 54,000 Factory supervisor salaries 140,000 Factory direct labor 235,121 Factory supplies 44,400 Factory property tax 25,250 Advertising cost 27,000 Administrative salaries 48,000 Administrative-related depreciation 19,200 Total expected costs $ 934,771 Required: Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.31 per hour. Determine the amount of applied overhead if 19,200 actual hours are worked in the upcoming year.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...
See similar textbooks
icon
Related questions
Question

E2-5 (Algo) Calculating Predetermined Overhead Rate and Applied Overhead [LO 2-3]

Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow:

Bike parts $ 341,800
Factory machinery depreciation 54,000
Factory supervisor salaries 140,000
Factory direct labor 235,121
Factory supplies 44,400
Factory property tax 25,250
Advertising cost 27,000
Administrative salaries 48,000
Administrative-related depreciation 19,200
Total expected costs $ 934,771

Required:

  1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.31 per hour.
  2. Determine the amount of applied overhead if 19,200 actual hours are worked in the upcoming year.
 
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

SEE SOLUTION
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS