Concept explainers
Under- and overapplied
$800,000
|
|
Direct labor hours |
50,000
|
Direct labor cost |
$250,000
|
Machine hours |
40,000
|
Required
a.Assume that Kim-Brooks applies manufacturing overhead on the basis of direct labor hours. During the year, 49,800 direct labor hours were worked. How much overhead was applied to work in process? If actual manufacturing overhead for the year was $792,000, was overhead under- or overapplied during the year? By how much?
bAssume that Kim-Brooks applies manufacturing overhead on the basis of direct labor cost. During the year, $245,000 in direct labor cost was incurred. How much overhead was applied to work in process during the year? If actual manufacturing overhead for the year was $792,600, was overhead under- or overapplied during the year? By how much?
cAssume that Kim-Brooks applies manufacturing overhead on the basis of machine hours. During the year, 40,200 machine hours were worked. How much overhead was applied to work in process during the year? If actual manufacturing overhead for the year was $792,600, was overhead under- or overapplied during the year? By how much?
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- Peach, Inc., has identified the following overhead costs and cost drivers for next year: Overhead Item Setup costs.. Ordering costs Maintenance costs. Power Expected Cost $ 90,000 50,000 150,000 30,000 The following are two of the jobs completed during the year. Job 700 Direct materials. Direct labour Units completed. Direct labour hours Number of setups Number of orders. Machine hours. Kilowatt hours. The company's practical activity is 5,000 direct labour hours. $1,200 $900 250 40 2 Cost Driver Number of setups Number of orders.. Machine hours. Kilowatt hours. 10 50 60 Job 701 $600 $400 100 20 1 4 40 25 Expected Actual Transactions 400 4,000 25,000 75,000 Instructions: 1. Determine the unit cost for each job using direct labour hours to apply overhead. Round answers to two decimal places.arrow_forwardH6. Broduer Aquatics manufactures swimming pool equipment. Broduer estimates total manufacturing overhead costs next year to be $2,500,000 The company also estimates it will use 50,000 direct labour hours and incur $1,000,000 of direct labour cost next year. In addition, the machines are expected to be run for 30,000 hours. Compute the predetermined manufacturing overhead rate for next year under the following independent situations: 1. Assume that Brodeur uses direct labour hours as its manufacturing overhead allocation base. 2. Assume that Brodeur suses direct labour cost as its manufacturing overhead allocation base. 3. Assume that Brodeur uses machine hours as its manufacturing allocation basearrow_forwardPlease answer asaparrow_forward
- Unigloo Corporation uses a predetermined overhead rate based on direct labour-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:Direct materials $5,000Direct labour $19,000Rent on factory building $16,000Sales salaries $24,000Depreciation of corporate office printers $13,000Depreciation on factory machinery $7,000Indirect materials $11,000Indirect labour $14,000Unigloo estimates that 12,000 direct labour-hours will be worked during the year. Calculate the predetermined overhead rate per hour.arrow_forwardhelp mearrow_forwardSubmit UOJPBY781 Corp.s manufacturing overhead for the year was estimated to be $783,200 at the begining of the year. O Quiz Tools At the end of the year, UOJPBY781's actual direct labor-hours for the year were 36,260 hours. (ID#65031) UOJPBY781's actual manufacturing overhead for the year was $760,000. 100% UOJPBY781's manufacturing overhead for the year was overapplied by $37,720. Collapse Q.) If UOJPBY781's predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Round your intermediate calculations to 2 decimal places.) Multiple Choice 32,831 direct labor-hours 36,260 direct labor-hours 35,600 direct labor-hours MacBook Air ...arrow_forward
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