Sohar Soap Factory applies manufacturing overhead based on machine hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing overhead costs R.O.360,000 6,000 1,500,000 10,000 300,000 Estimated labor hours Estimated manufacturing overhead Actual machine hours used Estimated machine hours Actual labor hours used 7,500 The amount of manufacturing overhead to be applied is: Select one: O a. 200,000 O b. 10,000 O c None of the answers are correct O d. 50,000 O e. 120,000

Sohar Soap Factory applies manufacturing overhead based on machine hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing overhead costs R.O.360,000 6,000 1,500,000 10,000 300,000 Estimated labor hours Estimated manufacturing overhead Actual machine hours used Estimated machine hours Actual labor hours used 7,500 The amount of manufacturing overhead to be applied is: Select one: O a. 200,000 O b. 10,000 O c None of the answers are correct O d. 50,000 O e. 120,000

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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A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $11,400 Assembly Parts 4,500 4,500 217,800 Packaging Pieces 250 200 27,450 Machine Hours per Unit 4 3 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit ? ? B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit ? ?
Ibra manufacturing uses machine hours as an activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was OMR 2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling OMR 2,100,000. The estimated machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12? Select one: a. OMR 102,500 O b. OMR 105,000 Oc. None of the answers are correct O d. OMR 2,100 e. OMR 2,050
Here are selected data for Wilson Company Estimated manufacturing overhead Estimated labor hours Actual direct labor hours Estimated direct labor cost Actual direct labor cost Factory depreciation $257,750 35,000 36,000 $330,400 $320,300 $65,400 If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate? OA. 78% of direct labor cost OB. 80 % of direct labor cost OC. 128% of direct labor cost OD. 103% of direct labor cost Factory utilities Indirect labor Sales commissions Factory rent Factory property taxes. Indirect materials COS $30,200 $22,400 $53,700 $47,700 $28,100 $33,000
Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, 163E and E761, about which it has provided the following data: I63E E76I $22.20 $66.60 $17.50 $ 52.50 Direct labor-hours per unit 0.50 84,000 Annual production (units) 1.50 28,000 The company's estimated total manufacturing overhead for the year is $3,141,600 and the company's estimated total direct labor-hours for the year is 84,000. The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Direct materials per unit Direct labor per unit Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations…
XYZ industries applies overhead based on direct labor cost. The following information was available for the last year: Actual manufacturing overhead OMR50,000; Underapplied manufacturing overhead OMR10,400; Actual Prime cost OMR52,000; Actual Direct material cost OMR19,000; Estimated direct labor cost OMR43,000. What was the estimated manufacturing overhead for the year? Select one: a. None of the answers given O b. OMR49,200 O c. OMR51,600 O d. OMR39,600 O e. OMR46,800
Solution method please.
XYZ industries applies overhead based on direct labor cost. The following information was available for the last year: Actual manufacturing overhead OMR50,000; Underapplied manufacturing overhead OMR10,400; Actuai Prime cost OMR52,000; Actual Direct material cost OMR19,000; Estimated direct labor Cost OMR29,000. What was the estimated manufacturing overhead for the year? Select one: O a. None of the answers given O b. OMR39,600 OC. OMR34,800 O d. OMR39,600 O e. OMR37,200
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $11,400 Assembly Parts 4,500 4,500 217,800 Packaging Pieces 250 200 27,450 Machine Hours per Unit 4 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $4
Manufacturing cost data for Cullumber Company, which uses a job - order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labour cost and the rate is the same.
The following information was gathered for the Greensprings Corporation for the most recent year. Manufacturing overhead is allocated using machine hours, Actual machine hours Allocated manufacturing overhead. Estimated manufacturing overhead costs Actual manufacturing overhead costs By how much is manufacturing overhead over or underallocated? A. $82,000 overallocated B. $82,000 underallocated OC. $8,000 underallocated OD. $8,000 overallocated 139,000 $1,130,000 $1,056,000 $1,138,000
The related data of Danaya Company: Actual direct labor hours 10,000 Actual overhead cost P893,200 Underapplied factory overhead 125,700 Factory overhead is based on direct labor hours. How much is the predetermined rate?
O e. OMR14500 XYZ Company uses a job costing system and applies manufacturing overhead using a predetermined overhead rate based on direct labor hours. Information for the current year is as follows: Estimated manufacturing overhead OMR65,000; Actual manufacturing overhead OMR62,000; Estimated direct labor hours 20,000: Actual di labor hours 22,000. The amount of over- or underapplied overhead for the year was Select one: O a. OMR3,000 underapplied O b. None of the answers given OC OMR9,500 overapplied O d. OMR9,500 underapplied O e. OMR3,000 overapplied