Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows: $ 33,810 $ 270,480 $ 1,386,210 Work-in-process inventory Finished goods inventory Cost of goods sold Required: Prepare an entry to allocate the over- or underapplied overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No A Transaction 1 General Journal Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Overhead Applied Debit 390 3,120 15,990 Credit 19,500 X

Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows: $ 33,810 $ 270,480 $ 1,386,210 Work-in-process inventory Finished goods inventory Cost of goods sold Required: Prepare an entry to allocate the over- or underapplied overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No A Transaction 1 General Journal Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Overhead Applied Debit 390 3,120 15,990 Credit 19,500 X

Name: Linzee Liners estimates that its manufacturing overhead will be $1,72
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Description: Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs willamount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 030

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cards by Hallmark allocate factory overhead based on hours used by a piece of equipment. At the beginning of the period, the company estimates factory overhead to be $25,000 and expects the equipment to be used for 4,000 hours. During the period Job, 22 requires 1,900 hours of use of the equipment. Job 23 requires 1,700 hours, and Job 24 requires 100 hours. As of March 31, actual indirect costs include: $4,000 for indirect materials, $9,100 for indirect labor, $6,000 for utilities, and $5,200 for equipment depreciation. Required: a. Prepare the journal entry to record the costs considered factory overhead. b. Calculate the predetermined factory overhead rate. c. Prepare the journal entry required to apply the factory overhead to the jobs at the end of the month.
Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? b. What was the over- or underapplied manufacturing overhead for Year 1?
Antoine Machining estimated its manufacturing overhead to be $279,000 and its direct materials costs to be $450,000 in Year 1. Three of the jobs that Antoine Machining worked on in Year 1 had actual direct materials costs of $15,000 for Job AM002, $55,000 for Job AM005, and $70,000 for Job AM008. For Year 1, actual manufacturing overhead was $313,000 and total direct materials cost was $540,000. Manufacturing overhead is applied to jobs on the basis of direct materials costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows: Work-in-process inventory $ 20,088 Finished goods inventory 63,612 Cost of goods sold 251,100 Required: Prepare an entry to allocate the under- or overapplied overhead.
XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ Company's estimated overhead was $600,000 based on an expected 50,000 direct labor hours to be worked, with direct laborers expected to be paid $6 per hour. For the current year, XYZ's actual overhead costs totaled $620,000 and actual direct labor cost totaled $325,000. For the current year, overhead was: O under-applied by $20,000 O over-applied by $22,000 O under-applied by $30,000 over-applied by $20,000 O under-applied by $22,000 O over-applied by $30,000 none of the above choices are correct
Cavy Company estimates that total factory overhead costs will be $1,039,500 for the year. Direct labor hours are estimated to be 110,000.
Cavy Company estimates that total factory overhead costs for the following year will be $1,749,900. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 30,700 hours. The machine hours for the month of April for all of the jobs were 5,300. If the actual factory overhead for April totaled $309,350. Determine the over- or underapplied amount for the month. Enter the amount as a positive number.
Wert Corporation uses a predetermined overhead rate based on direct labour cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labour-hours. The company's direct labour wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labour cost of $650,0 For the year, manufacturing overhead was: Underapplied or overapplied and by how much?
am. 112.
Cavy Company estimates that total factory overhead costs for the following year will be $994,000. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 35,500 hours. Compute the predetermined factory overhead rate.fill in the blank 1 of 1$ per machine hour
Cavy Company estimates that total factory overhead costs will be $1,053,206 for the year. Direct labor hours are estimated to be 107,800. a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent. $4 per direct labor hour b. Determine the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 1,200 and to Job 777 if the amount of direct labor hours is 3,300. Job 345 Job 777 $4 c. Journalize the entry to record the factory overhead applied if Jobs 345 and 777 are the only jobs for the period. If an amount box does not require an entry, leave it blank.
Tower Mfg. allocates overhead based on machine hours. Tower estimates it will incur $200,000 of total overhead costs and use 10,000 machine hours in the coming year. During February, the Assembly department of Tower Mfg. used 375 machine hours. In addition, Tower incurred actual overhead costs as follows during February: indirect materials, $1,800; indirect labor, $5,700; depreciation on factory equipment, $8,000; and factory utilities, $500. 1. Compute the company’s predetermined overhead rate for the year. 2. Prepare journal entries to record (a) overhead applied for the Assembly department for February and (b) actual overhead costs used during February.
York Company is a machine shop that estimated overhead will be $55,000, consisting of 5,000 hours of direct labor. The cost to make Job 0325 is $70 in aluminum and two hours of labor at $30 per hour. During the month, York incurs $60 in indirect material cost, $140 in administrative labor, $300 in utilities, and $250 in depreciation expense. A. What is the predetermined overhead rate if direct labor hours are considered the cost driver? per direct labor hour B. What is the cost of Job 0325? C. What is the overhead incurred during the month?