Osborn Manufacturing uses a predetermined overhead rate of S19.00 per direct labor hour. This predetermined rate wae based on acost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12 800 direct labor-hoursThe company actually incurred $241,000 of manufacturing overhead annd 12,300 direct labor-hours during the periodRequired:1. Determine the amount of underapplied or overapplied manufecturing averhead for the period.2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry todis pose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much?1 Manufacturing overhead underappledby2 The gross margin would decrease

Manufacturing overhead are the indirect manufacturing costs incurred in the production process. For…

Answered: Osborn Manufacturing uses a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $280,800 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $268,000 and 12,700 total direct labor-hours during the period. Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
im.3
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $233,125 and direct labor hours would be 46,625. Actual factory overhead costs incurred were $247,123, and actual direct labor hours were 51,484. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$24,295 underapplied b.$257,420 overapplied c.$10,297 underapplied d.$10,297 overapplied
Berry Company applies overhead on the basis of direct labor hours. Given the following data, calculate overhead applied and the under- or over-application of overhead for the period: Estimated annual overhead cost $450,000 Actual annual overhead cost $445,000 Estimated direct labor hours 90,000 Actual direct labor hours 88,000
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← Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost. The manufacturing overhead cost allocated during the year is $280,000. The details of production and costs incurred during the year are as follows: Actual direct materials cost Actual direct labor cost $811,000 $170,000 $262,000 5,520 hours Actual overhead costs incurred Total direct labor hours What is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places.) OA. 164.71% OB. 34.53% OC. 93.57% O D. 64.89% XXID
Assume the following: 1. Estimated fixed manufacturing overhead for the coming period of $220,000 2. Estimated variable manufacturing overhead of $2.00 per direct labor hour 3. Actual manufacturing overhead for the period of $320,000 4. Actual direct labor-hours worked of 54,000 hours 5. Estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: Note: Round your intermediate value of "Predetermined overhead rate" to two decimal places. Multiple Choice $325,926. $324,000. $336,004.
kk.2
Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $270,000 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor- hours. The company incurred actual total manufacturing overhead cost of $268,000 and 12,500 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead applied
Luthan Company uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $266,000 and 12,400 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
BFAR Company used a predetermined overhead rate last year of P2 per direct labor hour, based on an estimate of 87,500 direct labor hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred ........... P176,500 Actual direct labor hours worked ........... 90,000 Compute the under- or overapplied overhead. Encode the value as is if underapplied. Encode the answer as a negative amount if overapplied.

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