TB MC Qu. 5-63 (Algo) Manufacturing overhead: Metal CompanyMetal Company budgeted $564,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead:Budgeted Level for CostDriverOverhead Cost PoolMaterials handlingBudgeted OverheadDirect laborDirect materialsMachine setupMachine hoursInspectionsCost$164,00014,4001,80015,000Machine setupMachine repairInspectionsRequirements for Job # 971 which manufactured 4 units of product:20 hours220 pounds40 setups15,900 machine hours15 inspectionsSaved4,100 pounds480 setups30,000 machine hours250 inspectionsOverhead Cost DriverWeight of materialsNumber of setupsMachine hoursNumber of inspectionsIf Metal Company uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job # 971 is:

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Description: TB MC Qu. 5-63 (Algo) Manufacturing overhead: Metal CompanyMetal Company budgeted $564,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead:Budgeted Level for CostDriverOverhead Cost PoolMaterials ha

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TB MC Qu. 5-63 (Algo) Manufacturing overhead: Metal Company Metal Company budgeted $564,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead: Budgeted Level for Cost Driver Overhead Cost Pool Materials handling Machine setup Machine repair Inspections Budgeted Overhead Cost $164,000 14,400 1,800 15,000 Requirements for Job # 971 which manufactured 4 units of product: Direct labor Direct materials Machine setup Machine hours Inspections 20 hours 220 pounds 40 setups 15,900 machine hours 15 inspections 4,100 pounds 480 setups 30,000 machine hours. 250 inspections Overhead Cost Driver Weight of materials Number of setups Machine hours Number of inspections If Metal Company uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job # 971 is:

TB MC Qu. 5-63 (Algo) Manufacturing overhead: Metal Company Metal Company budgeted $564,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead: Budgeted Level for Cost Driver Overhead Cost Pool Materials handling Machine setup Machine repair Inspections Budgeted Overhead Cost $164,000 14,400 1,800 15,000 Requirements for Job # 971 which manufactured 4 units of product: Direct labor Direct materials Machine setup Machine hours Inspections 20 hours 220 pounds 40 setups 15,900 machine hours 15 inspections 4,100 pounds 480 setups 30,000 machine hours. 250 inspections Overhead Cost Driver Weight of materials Number of setups Machine hours Number of inspections If Metal Company uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job # 971 is:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...

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A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of 10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April: a. Materials issued to Assembly, 24,000 b. Direct labor cost: Assembly, 500 hours at 9.20 per hour; Finishing, 400 hours at 8 per hour c. Overhead applied to production d. Goods transferred to Finishing, 32,500 e. Goods transferred to finished goods warehouse, 20,500 f. Actual overhead incurred, 10,000 Required: 1. Prepare the required journal entries for the preceding transactions. 2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each departments ending work-in-process inventories.
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Direct labor hours are estimated as 2,000 in Quarter 1; 2,100 in Quarter 2; 1,900 in Quarter 3; and 2,300 in Quarter 4. Prepare a manufacturing overhead budget using the information provided.
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Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead rate so that factory overhead may be applied to production during the month. It calculates the overhead using three different methods and then decides which one to use. Total estimated factory overhead costs are 600,000. Total estimated direct labor hours are 30,000. Total estimated direct labor costs are 1,200,000. Total machine hours are estimated to be 200,000. Calculate the predetermined overhead application rates based on (1) direct labor hours, (2) direct labor costs, and (3) machine hours.
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