FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Concept explainers
Topic Video
Question
Transcribed Image Text:The Fine Company uses a job order costing system. The following information belongs to current
period:
Estimated manufacturing overhead at the beginning of the period: $440,000
Actual manufacturing overhead incurred during the period: $400,000
Manufacturing overhead underapplied: $16,000
Predetermined overhead rate: $20 per direct labor hour
On the basis of above information, how many direct labor hours were worked during the current
period?
Select one:
a. 22,000 hours
b. 20,000 hours
C. 20,800 hours
d. 19,200 hours
Previous page
Next
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Landen Corporation uses job-order costing. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour During the y Direct materials Direct labor cost Direct labor-hours e year, Job 550 was started and completed. The following information pertains to this job: Machine-hours $ 201 $ 240 15 5 Required: 1. Assume Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: 125,000 62,500 $ 350,000 a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 1. Direct labor-hours:…arrow_forwardMountain View Company is a manufacturing firm that operates a job-order costing system. Overhead costs are applied to jobs on the basis of direct labour-hours. At the beginning of the year, management estimated that the company would incur $192,000 in manufacturing overhead costs and work 8,000 direct labour-hours. Required: 1. Compute the company's predetermined overhead rate.arrow_forwardJob A includes direct materials costs of $1,400 and direct labor costs of $950. If the predetermined overhead rate is 65% of direct labor cost, what is the total cost for Job A?arrow_forward
- Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour Recently, Job K913 was completed with the following characteristics: Total direct labor-hours Direct materials Direct labor cost 150 $ 705 $ 4,650 70,000 $ 511,000 $ 2.10 The total job cost for Job K913 is closest to: (Round your intermediate calculations to 2 decimal places.)arrow_forwardKareem Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost OMR 1,600,000 Actual annual overhead cost OMR 1,575,000 Estimated machine hours 400,000 Estimated Labor hours 200,000 Actual Labor hours 150,000 Actual machine hours 390,000arrow_forwardBerry Company applies overhead on the basis of direct labor hours. Given the following data, calculate overhead applied and the under- or over-application of overhead for the period: Estimated annual overhead cost $450,000 Actual annual overhead cost $445,000 Estimated direct labor hours 90,000 Actual direct labor hours 88,000arrow_forward
- Computing Total Job Costs and Unit Product Costs Using a Plantwide Predetermined Overhead Rate Mickley Company’s plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $ 17.00 per hour. The following information pertains to Job A-500: Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 40 units, what is the unit product cost for this job?arrow_forwardVerizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $182,400. Estimated direct labor cost was $446,500 for 19,000 hours. Actual costs for the most recent month are summarized here: Total Item Description Direct labor (1,900 hours) Cost $44,651 Indirect costs Indirect labor 2,460 3,440 3,370 4,750 Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries 5,730 1,150 1,890 4,200 5,370 Selling expensesarrow_forwardSaved Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $333,500 and total machine hours of 46,000. During the year actual manufacturing overhead incurred was $323,680 and 47,600 machine hours were used. (a) Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) Pdetemined Overhed Rate per hourarrow_forward
- Puzzle Company uses a job order costing system. The company's executives estimated that direct labor would be $1,650,000 (150,000 hours at $11/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate?arrow_forwardAt the beginning of the year, a company estimated a predetermined plantwide overhead rate of $8.50 per machine - hour. Job X used 16 machine-hours and it was charged $200 and $288 for direct materials and direct labor, respectively. What is the total job cost for Job X? A. $446 B. $136 C. $624 D. $488arrow_forwardMNO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total estimated direct labor-hours 50,000 Total estimated fixed manufacturing $285,000 overhead cost Estimated variable manufacturing overhead per direct labor-hour 3.80 $ Recently, Job P123 was completed with the following characteristics: Total actual direct labor-hours 20 $ 710 $ 500 Direct materials Direct labor cost The total job cost for Job P123 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,210 $1,400 $690 $900arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education