Lynch Audio produces stereo components for a major automotive stereo manufacturer. It currently uses the machine hour method of applying factory overhead to production. Information for the previous year follows: Budgeted amounts Actual amounts Factory overhead $3,000,000 $3,050,000 Direct labor hours @ $10 per hour 250,000 248,000 Machine hours 750,000 735,000 During the year, Lynch produced a new product, Super Tweeters, which involved $27,000 of material, 3,100 direct labor hours and 4,500 machine hours. a. Compute the predetermined factory overhead rate. b. Compute the amount of under- or overapplied factory overhead. c. Determine the cost of the Super Tweeter job.
Lynch Audio produces stereo components for a major automotive stereo manufacturer. It currently uses the machine hour method of applying factory overhead to production. Information for the previous year follows: Budgeted amounts Actual amounts Factory overhead $3,000,000 $3,050,000 Direct labor hours @ $10 per hour 250,000 248,000 Machine hours 750,000 735,000 During the year, Lynch produced a new product, Super Tweeters, which involved $27,000 of material, 3,100 direct labor hours and 4,500 machine hours. a. Compute the predetermined factory overhead rate. b. Compute the amount of under- or overapplied factory overhead. c. Determine the cost of the Super Tweeter job.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 3PA: Lean accounting Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar...
Related questions
Question
Lynch Audio produces stereo components for a major automotive stereo manufacturer. It currently uses the machine hour method of applying factory
|
Budgeted amounts |
Actual amounts |
Factory overhead |
$3,000,000 |
$3,050,000 |
Direct labor hours @ $10 per hour |
250,000 |
248,000 |
Machine hours |
750,000 |
735,000 |
During the year, Lynch produced a new product, Super Tweeters, which involved $27,000 of material, 3,100 direct labor hours and 4,500 machine hours.
a. Compute the predetermined factory overhead rate.
b. Compute the amount of under- or overapplied factory overhead.
c. Determine the cost of the Super Tweeter job.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning