Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 13, Problem 13.16E
Exercise 13.16
LO 5, 6
Manufacturing
Required:
- Calculate the number of hours of direct labor used during June.
- Actual
manufacturing overhead costs incurred during June totaled $49,340. Calculate the amount of over- or underapplied overhead for June. - Identify two possible explanations for the over- or underapplied overhead.
- Explain the accounting appropriate for the over- or underapplied overhead at the end of June.
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QUESTION 10
Shoes Wisely, Inc. allocates overhead using machine hours as the allocation base. The following information was estimated at the beginning of the year:
Estimated Manufacturing Overhead
$68,000
Estimated Machine Hours
18,000
Actual overhead totaled $72,000. During the year, the company produced 8,500 units of product using 14,000 machine hours and 60,000 direct labor hours. How much
manufacturing overhead was allcoated to the product during the year?
Round your answer to whole dollars.
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
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Exercise 13-18 (Algo) Manufacturing
[The following information applies to the questions displayed below.]
Creative Lighting Incorporated makes specialty table lamps. Manufacturing overhead is applied to production on a
direct labor hours basis. During June, the first month of the company's fiscal year, $58,110 of manufacturing overhead
was applied to Work in Process Inventory using the predetermined overhead application rate of $5.85 per direct
labor hour.
Exercise 13-18 (Algo) Part d
d. Is the overapplied or underapplied overhead for the year normally transferred to cost of goods sold in the income statement?
Yes or No
overhead-over/underapplied LO 13-5, 13-6
Yes
No
Question 6
Job # 0098 incurred the following during production:
Direct Materials:
Manufacturing labor:
Packaging materials:
Packing and shipping labor:
The following data is also available for the company:
Overhead costs for the period:
Indirect Labor (machine maintenance):
The company incurs costs at the following rates:
Manufacturing labor:
Auxiliary labor (maintenance, packaging, etc.):
Overhead allocation:
$300
7 hours
$20
0.5 hours
$3,000
20 hours
$12/hour
$10/hour
$5/manufacturing labor hour
Given this information, what was the total cost of the job that was transferred from Work in Process Inventory
the Finished Goods Inventory?
Chapter 13 Solutions
Accounting: What the Numbers Mean
Ch. 13 - Prob. 13.1MECh. 13 - Mini-Exercise 13.2 LO 5, 6 Calculate predetermined...Ch. 13 - Mini-Exercise 13.3 LO 6 Underapplied overhead...Ch. 13 - Mini-Exercise 13.4 LO 7 Statement of cost of goods...Ch. 13 - Prob. 13.5MECh. 13 - Prob. 13.6MECh. 13 - Exercise 13.7 LO 2 Value chain classifications...Ch. 13 - Prob. 13.8ECh. 13 - Exercise 13.9 LO 3, 4 Cost classifications For...Ch. 13 - Exercise 13.10
LO 3, 4
Cost classifications For...
Ch. 13 - Exercise 13.11
LO 4
Cost classifications Aussie...Ch. 13 - Exercise 13.12
LO 4
Cost classifications College...Ch. 13 - Exercise 13.13
LO 5
Product costing—various issues...Ch. 13 - Exercise 13.14
LO 5
Product costing—manufacturing...Ch. 13 - Exercise 13.15
LO 5, 6
Manufacturing...Ch. 13 - Exercise 13.16 LO 5, 6 Manufacturing...Ch. 13 - Prob. 13.17ECh. 13 - Prob. 13.18ECh. 13 - Prob. 13.19ECh. 13 - Exercise 13.20
LO 8
Variable versus absorption...Ch. 13 - Problem 13.21
LO 9
Activity-based costing MedTech,...Ch. 13 - Prob. 13.22PCh. 13 - Prob. 13.23PCh. 13 - Prob. 13.24PCh. 13 - Prob. 13.25PCh. 13 - Prob. 13.26PCh. 13 - Prob. 13.27PCh. 13 - Prob. 13.28PCh. 13 - Case 13.29 LO 4, 5, 7 Cost of goods manufactured,...Ch. 13 - Prob. 13.30CCh. 13 - Prob. 13.31CCh. 13 - Prob. 13.32C
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