Nautical Accessories, Inc., manufactures women's boating hats. Manufacturing overhead is assigned to production on a machine-hour...

Nautical Accessories, Inc., manufactures women's boating hats. Manufacturing overhead is assigned to production on a machine-hour basis. For 2016, it was estimated that manufacturing overhead would total $357,180 and that 25,010 machine hours would be used.

Required:

a. Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2016. (Round your answer to 2 decimal places.)

Predetermined overhead application rate

b. During April, 3,300 hats were made. Raw materials costing $6,930 were used, and direct labor costs totaled $9,110. A total of 780 machine hours were worked during the month of April. Calculate the cost per hat made during April. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Cost per hat produced

c. At the end of April, 1,280 hats were in ending inventory. Calculate the cost of the ending inventory and the cost of the hats sold during April. (Do not round intermediate calculations. Round your answers to 2 decimal places.)


Cost of hats in ending inventory
Cost of hats sold

Expert Solution

Ans:

Statement showing computations
Particulars	Amount
1.Estimated manufacturing overhead	357,180.00
2.Estimated machine hours	25010
3.Predetermined overhead application rate =1/2	14.28

b)
Raw materials cost	6,930.00
direct labor costs	9,110.00
Overhead = 780 *14.28	11138.4
Total Costs	27178.40
No of Hats	3,300.00
Cost per hat	8.24

c)
cost of the ending inventory = 1280*8.24	10547.20
cost of the hats sold = (3300-1280)*8.24	16644.80

ekkarill92 answered 8 months ago

Estimated variable manufacturing overhead $25 per machine hour Estimated fixed manufacturing overhead $67,100 Estimated machine-hours 6,100...

Estimated variable manufacturing overhead $25 per machine hour Estimated fixed manufacturing overhead $67,100 Estimated machine-hours 6,100 Actual manufacturing overhead $231,500 Actual machine-hours 6,250 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:

Norwall Company's variable manufacturing overhead should be $1.30 per standard machine-hour and its fixed manufacturing overhead...

Norwall Company's variable manufacturing overhead should be $1.30 per standard machine-hour and its fixed manufacturing overhead should be $30,368 per month. The following information is available for a recent month: The denominator activity of 8,320 machine-hours is used to compute the predetermined overhead rate. At the 8,320 standard machine-hours level of activity, the company should produce 3,200 units of product. The company’s actual operating results were: Number of units produced 3,690 Actual machine-hours 9,700 Actual variable manufacturing overhead cost $...

Norwall Company's variable manufacturing overhead should be $1.90 per standard machine-hour and its fixed manufacturing overhead...

Norwall Company's variable manufacturing overhead should be $1.90 per standard machine-hour and its fixed manufacturing overhead should be $34,440 per month. The following information is available for a recent month: a. The denominator activity of 17,220 machine-hours is used to compute the predetermined overhead rate. b. At the 17,220 standard machine-hours level of activity, the company should produce 8,200 units of product. c. The company’s actual operating results were: Number of units produced 8,940 Actual machine-hours 18,690 Actual variable manufacturing...

1. The predetermined manufacturing overhead rate is $18 per machine hour based on an estimated manufacturing...

1. The predetermined manufacturing overhead rate is $18 per machine hour based on an estimated manufacturing overhead of 180,000 and 10,000 machine hours. For the year the actual overhead was 200,000 and machine hours were 11,000. How much manufacturing overhead was applied during the year? a. 198,000 b. 200,000 c. none of the above 2. Overapplied manufacturing overhead that is not material is adjusted by which entry? a. debit manufacturing overhead and credit misc exp b. debit cash and credit...

Keeran Corporation estimates that its variable manufacturing overhead is $6.50 per machine-hour and its fixed manufacturing...

Keeran Corporation estimates that its variable manufacturing overhead is $6.50 per machine-hour and its fixed manufacturing overhead is $280,080 per period. If the denominator level of activity is 7,200 machine-hours, the predetermined overhead rate would be: Multiple Choice $650.00 per machine-hour $38.90 per machine-hour $6.50 per machine-hour $45.40 per machine-hour

Happy Clicks Inc. uses a predetermined overhead allocation rate of $4.75 per machine hour. Actual overhead...

Happy Clicks Inc. uses a predetermined overhead allocation rate of $4.75 per machine hour. Actual overhead costs incurred during the year are as follows: Indirect materials $5,200 Indirect labor $3,750 Plant depreciation $4,800 Plant utilities and insurance $9,530 Other plant overhead costs $12,700 Total machine hours used during the year 7,520 hours What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? Is the manufacturing overhead account under or over allocated and if so by...

Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production...

Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. The following data pertain to one month's operations: Variable manufacturing overhead cost incurred: $70,000 Total variable manufacturing overhead variance: $4,550 Favorable Standard machine setups allowed for actual production: 3,550 Actual machine setups incurred: 3,500 The standard variable overhead rate per machine setup is: Multiple Choice $18.44 $21.30 $21.00 $20.00

Norwall Company’s budgeted variable manufacturing overhead cost is $1.20 per machine-hour and its budgeted fixed manufacturing...

Norwall Company’s budgeted variable manufacturing overhead cost is $1.20 per machine-hour and its budgeted fixed manufacturing overhead is $105,966 per month. The following information is available for a recent month: The denominator activity of 33,640 machine-hours is used to compute the predetermined overhead rate. At a denominator activity of 33,640 machine-hours, the company should produce 11,600 units of product. The company’s actual operating results were: Number of units produced 12,060 Actual machine-hours 35,050 Actual variable manufacturing overhead cost $ 38,555...

If overhead is applied on the basis of machine hours, what will be the overhead rate per hour?

Simplex Company has the following estimated costs for next year: Simplex estimates that 10,000 direct labour and 16,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, what will be the overhead rate per hour?

72) Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-hour and its fixed...

72) Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-hour and its fixed manufacturing overhead is $242,048 per period. If the denominator level of activity is 6,200 machine-hours, the predetermined overhead rate would be: A) $520.00 per machine-hour B) $5.20 per machine-hour C) $44.24 per machine-hour D) $39.04 per machine-hour 73) Fleming Incorporated makes a single product—a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to...

Question