VS uses Direct-labor cost in dollars to allocate its overhead. For the year of 2013; •...

VS uses Direct-labor cost in dollars to allocate its overhead. For the year of 2013; • No beginning inventories • Estimated overhead at Jan 1st , $2,000,000 and estimated Direct-labor cost, $400,000 • Actual overhead for the year, $2,825,000 • During the year, VS started producing 30,000, finished 25,000 and sold 21,000 units • Other information for the year: WIP FG COGS DM in $85,000 $62,000 $320,000 DL in $60,000 $57,000 $468,000 VS uses the prorate approach to distribute overapplied and underapplied MO amounts. What final amount of COGS will VS report on its income statement for the year?

Solutions

Expert Solution

Particulars	FG	WIP	COGS	Total
DM	85,000.00	62,000.00	3,20,000.00	4,67,000.00
DLC	60,000.00	57,000.00	4,68,000.00	5,85,000.00
Units	4,000.00	5,000.00	21,000.00	30,000.00
OH Absoption Rates				5.00	Estimated OH/Estimated DLC
Absorbed Overheads	3,00,000.00	2,85,000.00	23,40,000.00	29,25,000.00	OH Absorption Rates * DLC
Overheads Actually Incurred				28,25,000.00
over absorbed OH				1,00,000.00	Absorbed Overheads - OH Actually Incurred
Adjustment Rate				0.17	Over Absorbed OH / Actual DLC
Adjustment for Over Absorbed OH	10,256.41	9,743.59	80,000.00	1,00,000.00	Adjustment Rate * Actual DLC
Finally Absorbed OH	2,89,743.59	2,75,256.41	22,60,000.00	28,25,000.00

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Beta Fish Corporation uses a predetermined overhead rate based on direct labor hours to allocate manufacturing...

Beta Fish Corporation uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,500 of manufacturing overhead during the year and that 150,700 direct labor hours would be worked. During the year, the company actually incurred manufacturing overhead costs of $582,300 and 135,300 direct labor hours were worked. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent...

Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year,...

Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $393,030. At the end of the year, actual direct labor-hours for the year were 21,200 hours, manufacturing overhead for the year was underapplied by $21,100, and the actual manufacturing overhead was $384,280. The predetermined overhead rate for the year must have been closest to: $18.13 per direct labor-hour $17.13 per direct labor-hour $18.54 per direct labor-hour $17.54 per...

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year,...

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Do not round your intermediate calculations.) A) $6,840 overapplied B) $6,840 underapplied C) $1,840 underapplied D)...

Golden Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year,...

Golden Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,700 hours. At the end of the year, actual direct labor-hours for the year were 21,500 hours, the actual manufacturing overhead for the year was $557,740, and manufacturing overhead for the year was underapplied by $24,540. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been: $552,520. $583,366. $533,200. $562,960.

X Company uses a plantwide overhead allocation system, with direct labor cost as the cost driver....

X Company uses a plantwide overhead allocation system, with direct labor cost as the cost driver. Budgeted overhead for the year is $867,000. The following annual budgeted and actual information is available for the only three products that it produces - X, Y, Z: X Y Z Units of production 1,000 33,000 3,100 Direct labor hours per unit 8 4 3 Direct labor wage rate $17.00 $24.00 $26.00 How much overhead was allocated to Product Z [round the overhead rate...

Carlon, Inc. uses a job-order costing system and applies overhead based on direct labor dollars. Job...

Carlon, Inc. uses a job-order costing system and applies overhead based on direct labor dollars. Job 316 was started in July and incurred the following costs in July: Direct materials $950 Direct labor $1,050 Applied overhead $1,260 The job was completed in August with an additional $2,100 in direct material cost and $1,400 in additional direct labor cost. What was the total cost of Job 316 at the end of August?

Tiger Corporation uses a standard cost system and applies overhead based on direct labor hours. If...

Tiger Corporation uses a standard cost system and applies overhead based on direct labor hours. If the actual quantity of direct labor hours exceeds the standard hours allowed: an favorable variable overhead rate variance will exist an unfavorable variable overhead efficiency variance will exist a favorable variable overhead efficiency variance will exist a favorable labor rate variance will exist

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard CostsActual CostsDirect materials251,600 lbs. at $5.40249,100 lbs. at $5.20Direct labor18,500 hrs. at $17.3018,930 hrs. at $17.70Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 19,310 directlabor hrs.:Variable cost, $4.80$87,910 variable costFixed cost, $7.60$146,756 fixed costEach unit...

11) Brand Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the...

11) Brand Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,860 hours and the total estimated manufacturing overhead was $511,524. At the end of the year, actual direct labor-hours for the year were 21,650 hours and the actual manufacturing overhead for the year was $511,524. Overhead at the end of the year was: Multiple Choice Top of Form $4,964 overapplied $4,964 underapplied $4,914 underapplied $4,914 overapplied 12) Weatherhead...

Thinnews Co., uses machine hours to allocate manufacturing overhead cost to outputs: Actual total overhead cost...

Thinnews Co., uses machine hours to allocate manufacturing overhead cost to outputs: Actual total overhead cost incurred $ 24,000 Actual fixed overhead cost incurred $ 10,000 Budgeted fixed overhead cost $ 11,000 Actual machine hours 5,000 Standard machine hours allowed for the units manufactured 4,800 Denominator level — machine hours 5,500 Standard variable overhead rate per machine hour $ 3.00 1.What is fixed overhead spending variance? Group of answer choices $3,000 favorable $3,000 unfavorable $1,000 favorable $1,000 unfavorable 2. What...

Subjects