manufacturing overhead for
Q: How have advances in manufacturing technology affected overhead application?
A: Overhead application: It is a process of allocating the cost to the jobs, the allocation of cost is…
Q: Compute the Predetermined Overhead Rate.
A: Predetermined Overhead rate is the rate at which the Overhead is applied to the Product based on the…
Q: Compute the actual manufacturing overhead and applied manufacturing overhead
A: Manufacturing overhead can be defined as the cost incurred upon the manufacturing or production of…
Q: Describe fixed manufacturing overhead under absorption costing.
A: Absorption costing: Under this method, manufacturing cost such as direct material and labor is…
Q: Which of the following is the step in which materials, labor, and overhead are detailed?
A: Direct material is the cost of the raw materials or parts that go directly into the production of a…
Q: How to identify costs incurredfor direct materials in a job
A: How to identify cost incurred for direct materials
Q: Explain fixed manufacturing overhead.
A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…
Q: How to calculate manufacturing cost per unit
A: Manufacturing cost can be defined as the cost that is incurred while producing a product. It…
Q: Which of these are factory overhead
A: Factory overhead includes: Rent cost on factory equipment Factory utilities…
Q: construction in process account
A: Construction contracts are contracts made by one person with other to involve in construction…
Q: labor utilization
A: Labor utilization is the percentage of effective time workers are engaged in the production process.…
Q: Explain manufacturing overhead costs.
A: Manufacturing overheads costs refer to the amount of cost incurred as indirect expenses for…
Q: Manufacturing overhead is
A: Predetermined overhead application rate is - (Estimated overhead costs)/(Total Direct labours) Note…
Q: Direct material Direct labor Overhead Total
A: The overheads are applied to production on the basis of predetermined overhead rate. As per…
Q: e activity-based factory overhead per unit f
A: Under activity-based costing technique costs are assigned to each product based on cost drivers…
Q: manufacturing overhead handled in a process cost system
A: Indirect cost is the cost that is not directly involved in the production process of the company.
Q: Distinguish between the product-costing and control purposes of standardcosts for factory…
A: Standard Costing: Standard costing is an accounting tool which is used to measure the variances in…
Q: predetermined overhead rate
A: Predetermined overhead rate = Total estimated overhead/Total machine hours
Q: Describe the use of process costing.
A: Process Costing: Process costing is method of cost accounting in which all the costs that are…
Q: Record the application of manufacturing overhead to production. 1
A: 1) Overhead rate = $182,400/19000 = 9.60 per labor hour Journal entry Transaction General Journal…
Q: Define the term manufacturing overheads.
A: Manufacturing overhead is all indirect costs incurred during the production process. This overhead…
Q: differentiate between job and contract costing
A: Answer : JOB COSTING = Job costing is an accounting method which track the cost of individual…
Q: factory overheads:
A: Correct Answer is Option B = i , v , vi I.e = Production foremen salaries , Indirect factory labour…
Q: Should design of cost be in factory overhead? Explain why
A: Factory overheads are the costs related to the manufacture of the goods.
Q: How much is Work in Process-Direct Labor?
A: Payroll The process of payroll to calculate the total labor hours which are included in the time…
Q: Job order costing:
A: Job order costing is the system of allocating manufacturing overheads to specific jobs. This is used…
Q: predetermined overhead rate for each activity base.
A: Predetermined overhead rate = Estimated annual manufacturing overhead costs/Estimated annual…
Q: Different between raw materials, work in process and finished goods inventories
A: A manufacturing company generally have three types of inventories in its stock: Raw Materials Work…
Q: Preparing a summary journal entry to record allocation of manufacturing overhead
A: Preparation of a summary journal entry to record allocation of manufacturing overhead. We have,The…
Q: Compute the Manufacturing Overhead Applied to Jobs;
A: Overhead cost allocation: It is the process of allocating the estimated overhead of a company to its…
Q: Describe how a single plantwide overhead allocation rate is used.
A: Cost: It refers to the economic value incurred by a company to produce a product or a service.
Q: Units of production method with workings required.
A: Depreciation is a decrease in the value of assets due to normal wear and tear, the effect of time,…
Q: Process Costing - Assem ding inventory production for
A: Work in progress inventory refers to the inventory which is still being in process of converting…
Q: Define Overhead Allocation.
A: Activity-Based Costing: It is a method that helps in finding the activities performed by a company…
Q: How to compute manufacturing overhead?
A: In order to manufacture the product, various indirect expenses are incurred such as indirect…
Q: Describe the two-stage process associated with plantwide overhead rates.
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect…
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: Describe weighted average method under process costing.
A: Process Costing: Process costing is method of cost accounting in which all the costs that are…
Q: What manufacturing cost term is used to describe the cost of materials that are an integral part of…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Explain an example of manufacturing overhead.
A: Manufacturing overhead costs: “The costs, which do not relate directly with the manufacturing of…
Q: raw material used
A: Raw material used = Opening raw materials + Raw materials purchased - Closing raw materials
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- Direct labor hours are estimated as 2,000 in Quarter 1; 2,100 in Quarter 2; 1,900 in Quarter 3; and 2,300 in Quarter 4. Prepare a manufacturing overhead budget using the information provided.Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
- Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows: Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be: a. 44.00. b. 197.50. c. 241.50. d. 501.00.Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01The 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?
- Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?Kokomo Kayak Inc. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during the month of March: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 18,000 units finished and transferred to stockroom. Work in process, end of period, 3,000 units, two-thirds completed. Required: Prepare a cost of production summary for March.PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead rate so that factory overhead may be applied to production during the month. It calculates the overhead using three different methods and then decides which one to use. Total estimated factory overhead costs are 600,000. Total estimated direct labor hours are 30,000. Total estimated direct labor costs are 1,200,000. Total machine hours are estimated to be 200,000. Calculate the predetermined overhead application rates based on (1) direct labor hours, (2) direct labor costs, and (3) machine hours.
- Mulliner Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.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: 150,000Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400