Linzee Liners estimates that its manufacturing overheati will be $1,731,900 in Year 1. It further estimates that direct labor costs will amount to $753,000 During March, Linzee worked on four jobs with actual direct labor costs of $35,300 for Job 0301, $22,800 for Job 0302, $32,300 for Job 0303, and $16,300 for Job 0304. Actual manufacturing overhead costs for the year were $1,717,500. Actual direct labor costs for the year were $738,000 Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows. Work-in-process inventory $ 33,948 $ 271,584 Finished goods inventory Cost of goods sold $ 1,391,868 Required: Prepare an entry to allocate the over- or underapplied overhead Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet Record an entry to allocate the over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View.neperaliqurnal

Linzee Liners estimates that its manufacturing overheati will be $1,731,900 in Year 1. It further estimates that direct labor costs will amount to $753,000 During March, Linzee worked on four jobs with actual direct labor costs of $35,300 for Job 0301, $22,800 for Job 0302, $32,300 for Job 0303, and $16,300 for Job 0304. Actual manufacturing overhead costs for the year were $1,717,500. Actual direct labor costs for the year were $738,000 Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows. Work-in-process inventory $ 33,948 $ 271,584 Finished goods inventory Cost of goods sold $ 1,391,868 Required: Prepare an entry to allocate the over- or underapplied overhead Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet Record an entry to allocate the over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View.neperaliqurnal

Name: Da Linzee Liners estimates that its manufacturing overheati will be $1
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Description: Da Linzee Liners estimates that its manufacturing overheati will be $1,731,900 in Year 1. It further estimates that direct labor costs willamount to $753,000 During March, Linzee worked on four jobs with actual direct labor costs of $35,300 for Job 0

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?
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