rent companies use different bases in computing their predetermined overhead rates. From the following data compute the predetermined rate used by each company. Direct labor-hours Direct labor cost Manufacturing Overhead Cost Basis for determining predetermined overhead rate Company Information Machine-hours Rock Paper Scissors Total estimated overhead cost ? Assume the actual hours and cost data were: Rock Rock 2. Compute the overhead for each company. Actual Quantity of Company the Allocation Base ? Used by Each 100,100 50,700 $805,000 $394,450 (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the overhead for each company. Direct labor cost Information Rock Paper Scissors Machine-hours Direct labor-hours 110,600 190,800 137,600 44,800 48,000 40,400 Direct labor cost $846,500 $704,700 $397,800 Manufacturing Overhead Cost $459,000 $399,700 $373,900 base 20,300 48,700 Total estimated quantity of the overhead allocation Paper $741,400 $447,066 Direct labor- hours Predetermined Overhead Allocation Rate Scissors 11 125,100 38,300 $407,900 $421,587 Machine- hours 11 = Overhead Allocation Predetermined Rate Job Allocated Manufacturing Overhead Cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Different companies use different bases in computing their predetermined overhead rates. From
the following data compute the predetermined rate used by each company.
Information
Machine-hours
Direct labor-hours
Direct labor cost
Manufacturing Overhead Cost
Basis for determining predetermined
overhead rate
Total estimated
Company overhead cost
Rock
Paper
Scissors
Assume the actual hours and cost data were:
(Round your answers to two decimal places when needed and use rounded answers for all future
calculations).
1. Compute the overhead for each company.
2. Compute the overhead for each company.
Actual Quantity of
Company the Allocation Base
Used by Each
Rock
Paper
Scissors
Rock
Date
Information
Rock Paper Scissors
110,600 190,800 137,600
Machine-hours
Direct labor-hours
44.800 48,000 40,400
Direct labor cost
$846,500 $704,700 $397,800
Manufacturing Overhead Cost $459,000 $399,700 $373,900
Paper
Date
?
Scissors
Date
Description
Description
Description
?
100,100
50,700
$805,000
$394,450
V
V
V
Direct labor
cost
Rock
Total estimated
quantity of the
overhead allocation.
Debit
Debit
base
Debit
20,300
48,700
$741,400
$447,066
Direct labor-
hours
Predetermined
Overhead
Allocation Rate
Paper
Credit
Credit
3. Prepare the journal entries to adjust for overallocated or underallocated overhead to Cost of
Goods Sold for each company.
Credit
=
=
=
-
=
Scissors
=
125,100
38,300
$407,900
$421,587
Machine-
hours.
Predetermined
Overhead Allocation
Rate
Job Allocated
Manufacturing
Overhead Cost
Transcribed Image Text:Different companies use different bases in computing their predetermined overhead rates. From the following data compute the predetermined rate used by each company. Information Machine-hours Direct labor-hours Direct labor cost Manufacturing Overhead Cost Basis for determining predetermined overhead rate Total estimated Company overhead cost Rock Paper Scissors Assume the actual hours and cost data were: (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the overhead for each company. 2. Compute the overhead for each company. Actual Quantity of Company the Allocation Base Used by Each Rock Paper Scissors Rock Date Information Rock Paper Scissors 110,600 190,800 137,600 Machine-hours Direct labor-hours 44.800 48,000 40,400 Direct labor cost $846,500 $704,700 $397,800 Manufacturing Overhead Cost $459,000 $399,700 $373,900 Paper Date ? Scissors Date Description Description Description ? 100,100 50,700 $805,000 $394,450 V V V Direct labor cost Rock Total estimated quantity of the overhead allocation. Debit Debit base Debit 20,300 48,700 $741,400 $447,066 Direct labor- hours Predetermined Overhead Allocation Rate Paper Credit Credit 3. Prepare the journal entries to adjust for overallocated or underallocated overhead to Cost of Goods Sold for each company. Credit = = = - = Scissors = 125,100 38,300 $407,900 $421,587 Machine- hours. Predetermined Overhead Allocation Rate Job Allocated Manufacturing Overhead Cost
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