Jackson Inc. listed the following data for 2016:Budgeted factory overhead $1,271,000Budgeted direct labor hours 82,000Budgeted machine hours 41,000Actual factory overhead 1,201,000Actual direct labor hours 86,300Actual machine hours 39,400Round calculations to 2 significant digits.Assuming Jackson Inc. applied overhead based on direct labor hours, the firm's predeterminedoverhead rate for 2016 is:A. $14.20 per direct labor hour.B. $14.38 per direct labor hour.C. $15.24 per direct labor hour.D. $15.50 per direct labor hour.E. $15.85 per direct labor hour.

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Answered: Jackson Inc. listed the following data…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(b) Compute the total overhead variance. Total overhead variance $ LA
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials $ 390,000 Direct labor 262,000 Variable overhead 231,000 Production was 170,000 units. Fixed manufacturing overhead was $860,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same. Required A: Prepare a cost estimate for a volume level of 136,000 units of product this year. (Do not round intermediate calculations.) Cost Item This Year’s cost Direct materials _______________ Direct labor…
Kenmore Fabrication estimated that direct labor cost for the year would be $654,400. The company also estimated that fixed overhead would be $490,800 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($490,800) and variable overhead was also incurred as expected. There was $32,700 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Overhead Item Expected Cost Cost Driver Expected Quantity Setup costs $ 59,500 Number of setups 250 Ordering costs 49,000 Number of orders 1,500 Maintenance 138,000 Machine hours 2,000 Power 29,500 Kilowatt hours 4,000 Total Overhead $ 276,000 Total direct labor hours budgeted = 2,000 hours. The following actual data applies to one of the products completed during the year: Product X Direct materials $ 6,900 Number of setups 5 Direct labor $ 4,900 Number of orders 50 Units completed 100 Machine hours 50 Direct labor hours 100 Kilowatt hours 500 If Orange, Inc. uses machine hours to allocate overhead cost, the unit product cost of Product X will be: Multiple Choice $117.00. $137.00 $147.00 $167.00. $187.00.
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Standard Hours 2 hours Fixed manufacturing overhead During the most recent period, the following additional information was available: The total actual fixed overhead cost was $275,000. • The budgeted amount of fixed overhead cost was $285,000. 46,000 direct labor-hours were actually used to produce 24,120 units. How much was the fixed overhead volume variance? Multiple Choice $14,440 U Standard Cost $ 12.00
Overhead rate per hour?
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Velshi Printers has contracts to complete weekly supplements required by forty - six customers. For the year 2018, manufacturing overhead cost estimates total $2,080,000 for an annual production capacity of 16 million pages. For 2018 Velshi Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost pool Design changes Manufacturing overhead costs Activity level 100 design changes $160,000 Setups 1,850,000 6,000 setups Inspections 70,000 9,000 inspections Total manufacturing overhead costs $2,080,000 During 2018, two customers, Money Managers and Hospital Systems, are expected to use the following printing services: Activity Money Managers Hospital Systems Pages 90,000 106,000 Design changes Setups Inspections 12 17 26 34 Assuming activity - cost…
Sinbad Company applies factory overhead of the basis of direct labor hours. Budget and actual data for direct labor and overhead for the year are as follows: Budget Actual Direct labor hours 1,200,000 1,300,000 Manufacturing overhead costs 1,440,000 1,520,000 The manufacturing overhead for Sinbad for the current year is
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Overhead Item Expected Cost Cost Driver Expected Quantity Setup costs $ 52,000 Number of setups 250 Ordering costs 34,000 Number of orders 1,500 Maintenance 108,000 Machine hours 2,000 Power 22,000 Kilowatt hours 4,000 Total Overhead $ 216,000 Total direct labor hours budgeted = 2,000 hours. The following actual data applies to one of the products completed during the year: Product X Direct materials $ 5,400 Number of setups 5 Direct labor $ 3,400 Number of orders 50 Units completed 100 Machine hours 50 Direct labor hours 100 Kilowatt hours 500 If Orange, Inc. uses direct labor hours to assign overhead, the unit product cost for Product X will be: Multiple Choice $76.00. $86.00. $96.00. $106.00. $196.00.
please explain in steps
Kenmore Fabrication estimated that direct labor cost for the year would be $640,800. The company also estimated that fixed overhead would be $480,600 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($480,600) and variable overhead was also incurred as expected. There was $30,150 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost $ 619,044

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