The following data pertain to the Oneida Restaurant Supply Company for the year just ended. Budgeted sales revenue Actual manufacturing overhead Budgeted machine hours (based on practical capacity) Budgeted direct-labor hours (based on practical capacity) Budgeted direct-labor rate Budgeted manufacturing overhead Actual machine hours Actual direct-labor hours Actual direct-labor rate $ 205,000 338,000 10,000 20,000 $ 14 $364,000 11,000 18,000 $15

The following data pertain to the Oneida Restaurant Supply Company for the year just ended. Budgeted sales revenue Actual manufacturing overhead Budgeted machine hours (based on practical capacity) Budgeted direct-labor hours (based on practical capacity) Budgeted direct-labor rate Budgeted manufacturing overhead Actual machine hours Actual direct-labor hours Actual direct-labor rate $ 205,000 338,000 10,000 20,000 $ 14 $364,000 11,000 18,000 $15

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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Figuring a predetermined overhead rate using direct materials as the allocation base. $130500 estimated manufacturing overhead cost and $87000 as allocation base. Then whats next in the formula
a) Compute the firm’s predetermined overhead rate, which is based on direct-labour hours. b) Calculate the over-applied or under-applied overhead for 2021. c) Prepare a journal entry to close out the Manufacturing Overhead Account into Cost of Goods Sold. d) Activity based costing (ABC) is an alternative method of allocating overheads. How is ABC useful to managers?
Berry 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 88,000
Subject:
Assume the following: 1. Estimated fixed manufacturing overhead for the coming period of $220,000 2. Estimated variable manufacturing overhead of $2.00 per direct labor hour 3. Actual manufacturing overhead for the period of $320,000 4. Actual direct labor-hours worked of 54,000 hours 5. Estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: Note: Round your intermediate value of "Predetermined overhead rate" to two decimal places. Multiple Choice $325,926. $324,000. $336,004.
Carver Company uses a plantwide overhead rate based on direct labor costs. Suppose that Carver raises its wage rate for direct labor during the year. How would that affect the overhead applied? The total cost of jobs?
A company estimates its manufacturing overhead will be $525,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 42,000 per direct labor hour B. Budgeted direct labor expense: $1,050,000 per direct labor dollar C. Estimated machine hours: 70,000 per machine hour
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $157,350 4,560 $156,600 4,700 Estimated machine-hours Actual manufacturing overhead Actual machine-hours The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round your intermediate calculations to 2 decimal places.)
At the beginning of the year, Mirmax set its predetermined overhead rate for movies produced during the year by using the following estimates: overhead costs, $1,840,000, and direct labor costs, $460,000. At year-end, the company’s actual overhead costs for the year are $1,829,800 and actual direct labor costs for the year are $460,000. Determine the predetermined overhead rate using estimated direct labor costs. Enter the actual overhead costs incurred and the amount of overhead cost applied to movies during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Please see picture for format.
REQUIREMIENTS: What is the predetermined overhead rate? What is the amount of overhead applied for February? If the actual overhead for February is $64,700, what is the overhead variance and is it overapplied or underapplied?
i)Compute Fielder’s predetermined manufacturing overhead rate for 2020. ii)State the journal entries necessary to record the above transactions in the general journal: a)For direct materials used in February b)For indirect material issued to production in February c)For total manufacturing labour incurred in February d)To assign manufacturing labour to the appropriate accounts e)For other manufacturing overhead incurred f)For manufacturing overhead applied to production for February, given thatFieldermanufacturing company worked 2,750 machine hours. g)To move the completed jobs into finished goods inventory h)To sell the two completed jobs on account
When calculating the predetermined manufacturing overhead rate, what is the correct basis of calculation? a.Estimated overhead costs divided by the estimated amount of the cost driver or allocation base b.Estimated amount of the cost driver divided by the estimated total overhead costs c.Estimated overhead costs divided by the number of days in a year d.Actual overhead costs of the prior year divided by the actual amount of the cost driver or allocation base