Pyramid Company expects to incur $3,000,000 in manufacturing overhead costs this year. During the year, it expects to use 40,000 direct labor hours at a cost of $600,000 and 80,000 machine hours. Required: a. Prepare a predetermined overhead rate based on direct labor hours, direct labor cost, and machine hours. b. Why might Pyramid Company prefer to use machine hours to allocate manufacturing overhead? c. Using each of the predetermined overhead rates calculated in part a and the data that follows for job 128, determine the cost of job 128

Q: Stuart Corporation expects to incur indirect overhead costs of $73,775 per month and direct…

A: Formula: Predetermined overhead rate = Total overhead / Number of units Division of total overhead…

Q: Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates…

A: Definition: Predetermined manufacturing overhead rate is the rate that has been worked out at the…

Q: SPL Enterprises assigns overhead based on number of machine hours. For the upcoming year, they plan…

A: Overhead means the amount spend in manufacturing the goods in factory indirectly like foreman…

Q: At the begging of the year, Crane Company estimates annual overhead costs to be 2400000 and that…

A: Calculate overhead cost per machine hour:

Q: Perez Corporation expects to incur indirect overhead costs of $107,550 per month and direct…

A: Total production in units for four months = 5,200 + 8,500 + 3,900 + 6,300 Total production in units…

Q: Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…

A: Predetremined Overhead Rate = Estimated Total Maufacturing Overhead / Estimated Direct Labor hours

Q: a.  Determine the total factory overhead amount applied. Round to the nearest dollar. $fill in the…

A: It is said to be the favourable effect, when the overheads applied exceeds the actual overheads…

Q: The Denmark Company estimates its factory overhead for the next period at 425,000. It is estimated…

A: solution given estimated factory overhead  425,000  Units that will be produced  500,000…

Q: Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing…

A: Direct material costs = Cost per Machine Hour x No. of machine hours = $4.25 x  5,000 hours =…

Q: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it…

A: Predetermined allocation rate = Expected overhead / anticipated direct labor hours  = $900,000 /…

Q: A company estimated the manufacturing overhead costs for the coming year at $420,000. The total…

A: Overheads means all type of indirect costs being incurred by the business. These costs can not be…

Q: A company estimated the manufacturing overhead costs for the coming year at $420,000. The total…

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the…

Q: Sheridan Company estimates that annual manufacturing overhead costs will be $860,720. Estimated…

A: Overheads rate based on direct labour cost is as under:OH rate as % of DLC = Total Manufacturing OH…

Q: WYENNE Corporation uses a predetermined overhead application rate of P.30 per direct labor hour.…

A: Overheads are the indirect costs and expenses related to production and manufacturing of goods.…

Q: The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Thomlin Company forecasts that total overhead for the current year will be $10,864,000 with 194,000…

A: Projected total overhead = $10,864,000 Projected machine hours = 194,000 Hours

Q: A company estimates its manufacturing overhead will be $1,080,000 for the next year. What is the…

A: Activity based costing with the help of cost drivers, allocates overheads to cost pools before…

Q: Calculate and Use Overhead Rate During the coming accounting year, Baker Manufacturing, Inc.,…

A: A predetermined overhead rate is used to allocate the manufacturing overhead to the inventory. It is…

Q: Winston Company estimates that the factory overhead for the following year will be $1,225,600. The…

A: 1 ) Calculation of Total factory overhead amount applied:   Total factory overhead amount applied…

Q: At the beginning of the year, Concord Corporation estimates annual overhead costs to be $2400000 and…

A: Overhead rate is computed by dividing the estimated overhead by the estimated machine hours.…

Q: Custom Engines Company has the following estimated costs for the upcoming year: Direct labor costs…

A: The Numerical has covered the concept of predetermined overhead, The Predetermined overhead rate is…

Q: The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated…

A: Predetermined overhead rate = Estimated overhead cost / Machine hours

Q: Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $316,000.…

A: Overheads are the product costs that are not directly involved in the production process, and cannot…

Q: Cost Driver rate

A: Cost driver refers to the cost which is affected by some specific business activities and influenced…

Q: Cogswell Cogs, Inc. estimates its overhead for the upcoming year to be $1,693,500 and will use…

A: ABC (Activity Based Costing) : This is a method of allocating Overheads to the product based on the…

Q: If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total…

A: Variable Cost per unit =  (Cost of Highest Activity - Cost of lowest Activity)/(Highest Activity -…

Q: Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to…

A: Pre determined overhead Allocation  The purpose calculating the pre determined overhead allocation…

Q: The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated…

A: Predetermined factory overhead rate = Overhead cost / Direct labor hours

Q: K Company estimates that overhead costs for the next year will be $4,000,000 for indirect labor and…

A: Given: Cost for indirect labour = $ 4,000,000 Cost for factory utilities = $ 970,000 Direct labour…

Q: Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct…

A: Manufacturing expenses are simply an expenditure study that estimates how each department in your…

Q: Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs:…

A: The budget is prepared by the management based on experience. Based on the budget, It is helpful for…

Q: RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $75 million and…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: The Thomlin Company forecasts that total overhead for the current year will be $11,628,000 with…

A: Overhead costs refers to all indirect expenses required to run a business. It helps in determining…

Q: he Thomlin Company forecasts that total overhead for the current year will be $11,385,000 with…

A: Formula: Predetermined overhead rate = Estimated overheads / Estimated labor hours Division of…

Q: The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated…

A: Predetermined overhead rate = Estimated overhead cost / Direct material cost

Q: K Company estimates that overhead costs for the next year will be $3,500,000 for indirect labor and…

A: Planned overhead rate = Total manufacturing overhead / Number of labor hour

Q: The Thomlin Company forecasts that total overhead for the current year will be $11,089,000 with…

A: Under or over applied overhead rate is to be determined based on predetermined overhead rate.…

Q: Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to…

A: Working Notes: 1.  Estimated Manufacturing overhead cost = $ 500,000 2. Estimated Machine hours =…

Q: At the beginning of the year, Monroe Company estimates annual overhead costs to be $1,600,000 and…

A: overhead cost alludes to a progressing cost of working a business. Overheads are the consumption…

Q: Next year, Manny’s Mowing Service expects to use 31,200 direct labor hours and have a total…

A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…

Q: K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and…

A: Answer:-  Overhead rate meaning:- A cost assigned to the manufacturing of a product or service is…

Q: Winston Company estimates that the factory overhead for the following year will be $653,400. The…

A: Overheads are considered as fixed and common expenses that should be allocated to the products based…

Q: The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated…

A: In ABC costing method, overheads are allocated based on the activity or cost pool. Overhead cost…

Q: Next year, Pine Corp. expects to spend a total of 198,250 direct labor hours producing four models…

A: Overhead rate is computed by dividing overhead expenses by the direct labor hours.

Q: Calculate the predetermined manufacturing overhead rate for the coming year using direct labor hour…

A: Solution Formula used the predetermined manufacturing overhead rate is the overhead rate that is…

Q: A company expected its annual overhead costs to be $1,000,000 and direct labor costs to be $500,000.…

A: Predetermined overhead rate:   Predetermined overhead rate is a measure used to allocate the…

Q: The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with…

A: Predetermined overhead rate = Estimated total overhead/Estimated total machine hours Working capital…

Q: The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…