Exercise 11-5A (Algo) Treatment of overapplied or underapplied overhead LO 11-2 Pawhuska Company estimates that its overhead costs for Year 2 will be $594,000 and output in units of product will be 270,000 units. Required a. Calculate Pawhuska's predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.) b. If 22,000 units of product were made in March Year 2, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations.) c. If actual overhead costs in March were $46,900, would overhead be overapplied or underapplied and by how much? (Do not round intermediate calculations.) a. Predetermined overhead rate b. Allocated overhead cost c. Overhead costs per unit

Exercise 11-5A (Algo) Treatment of overapplied or underapplied overhead LO 11-2 Pawhuska Company estimates that its overhead costs for Year 2 will be $594,000 and output in units of product will be 270,000 units. Required a. Calculate Pawhuska's predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.) b. If 22,000 units of product were made in March Year 2, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations.) c. If actual overhead costs in March were $46,900, would overhead be overapplied or underapplied and by how much? (Do not round intermediate calculations.) a. Predetermined overhead rate b. Allocated overhead cost c. Overhead costs per unit

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Description: Exercise 11-5A (Algo) Treatment of overapplied or underapplied overhead LO 11-2Pawhuska Company estimates that its overhead costs for Year 2 will be $594,000 and output in units of product will be 270,000 units.Requireda. Calculate Pawhuska's predet

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3PB: Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should...

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Problem 1 The Denmark Company estimates its factory overhead for the next period at P 425,000. It is estimated that 500.000 units will be produced at a materials cost of P 1,000,000 and will require 250.000 direct labor hours at an estimated cost of P1,062,500. The machines will run about l100,000 hours. Required: The predetermined factorv overhead rate based on: 1. Material cost 2. Units of production 3. Machine hours 4. Direct labor cost 5. Direct labor hours Cs Scanned with CamScanner
O e. $2,636 Company XYZ uses machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 190,000 hours. The estimated variable overhead is $9 per hour and the estimated fixed overhead costs are $152,000. Calculate the predetermined overhead rate. Select one: O a. $10.80 O b. $9.80 O c. $0.10 O d. $0.80 O e. None of the answers given Finish attempt . ge OADUa Prisc F9 F6 F7 F3 F4 F2 23 24 8 6 3
EXERCISE 1 XYZ Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $45,000 80,000 15,000 30,000 50,000 Number of moves Material-handling costs.. Machine costs... 450 Machine hours.. Number of orders. Number of parts.. Number of setups.. 20,000 Order costs.. 750 Receiving costs.. Setup costs.. 50,000 250 Assume that each activity corresponds to a process. XYZ's normal activity is 5,000 direct labor hours. The following two jobs were completed during March: Job X-1 Job Y-4 $1,500 $750 Direct materials $2,000 $750 Direct labor ($15 per hour)... Units completed... Number of moves. Machine hours.. Number of orders. Number of parts. Number of setups.. 200 200 3 6 125 75 3 12 200 800 1 4 Required: 1. Determine the unit cost for each job using direct labor hours to apply overhead.
--/1 Question 23 View Policies Current Attempt in Progress upport The predetermined overhead rate for Crane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $14208 variable and $8640 fixed, and 2400 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is O $1152 F. O $2880 U. O $2880 F. O $1152 U. ch hp ins pr f12 f11 f10 f9 f8 f6 f7 f5 & 80 %3D 60 9. T.
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Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Rundle Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Direct materials Home 1 $ 75,000 91,000 Home 2 $ 106,000 139,000 Home 3 $ 172,000 195,000 Assume Rundle needs to allocate two major overhead costs ($35,300 of employee fringe benefits and $21,250 of indirect materials costs) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. Note: Round "Allocation rate" to 2 decimal places. Fringe Benefits: Home Allocation Rate × Weight of Base = Allocated Cost 1 = 2 x = 3 x = Total Indirect Materials: Home Allocation Rate × Weight of Base = Allocated Cost 1 x = 2 × = 3 x Total The cost components to determine the total cost of each house: Expected Costs Direct labor Direct materials Fringe benefits Indirect materials…
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--/1 Question 22 View Policies Current Attempt in Progress The predetermined overhead rate for Coronado Industries is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $12680 variable and $8040 fixed, and standard hours allowed for the product produced in June was 4000 port hours. The total overhead variance is O $720 F. O $4040 F. O $4040 U. O $720 U. hp ins f12 f11 f10 prt sc f9 144 f8 f7 f6 f5 4+ 8 %3D C 60 To 96