True or false: If false explain. 1. The Jordan company applies manufactory overhead based on direct...

True or false: If false explain.

1. The Jordan company applies manufactory overhead based on direct labor hours. Current and budgeted information related to direct labor and overhead for 2020 are listed below for indirect manufacturing costs.
Budget: Direct labor hours 300,000 Manufactory overhead 360,000

Actual results: DL 380,000 Manufactory Overhead 350,000

So, the cost are underapplied for $20,000. Answer: ???

2. Audi Company's indirect manufacturing costs were over applied by 27,000 in 2020. In that year, a total manufactory overhead of 508,000 had been budgeted and manufactury overhead of 496,000 was applied. The overhead that was currently incurred in 2020 is 469,000. Answer: ???

3. The process of allocating costs to a particular production, order, or service to a customer is known as job costing. Answer: ???

4. The debit from the manufacturing overhead account will reflect Actual costs of direct labor accounts and indirect manufacturing costs. Answer:???

5. Assuming that the normal costing system is used and is based on direct labor, the application rate for indirect manufacturing costs could be calculated by dividing: Budgeted manufacturing overhead between current direct labor hours. Answer: ???

Solutions

Expert Solution

Solution 1:

Overhead rate per DL hour = $360,000 / 300000 = $1.20 per DLH

Overhead applied = 380000*$1.20 = $456,000

Actual overhead = $350,000

Overapplied overhead = $456,000 - $350,000 = $106,000

Hence given statement is false.

Solution 2:

As manufacturing overhead is over applied by $27,000, therefore actual overhead incurred = Overhead applied - Over applied overhead = $496,000 - $27,000 = $469,000

Hence statement holds true.

Solution 3:

True, The process of allocating costs to a particular production, order, or service to a customer is known as job costing.

Solution 4:

False, The debit from the manufacturing overhead account will reflect Actual costs of indirect manufacturing costs only.

Solution 5:

False, Assuming that the normal costing system is used and is based on direct labor, the application rate for indirect manufacturing costs could be calculated by dividing: Budgeted manufacturing overhead between budgeted direct labor hours

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for...

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost for Martinez Manufacturing was $280,000 and actual overhead costs were $220,000. At the end of the year, manufacturing overhead was: 1. Overapplied by $20,000. 2. Underapplied by $20,000. 3. Overapplied by $4,000. 4. Underapplied by $4,000.

A manufacturing company applies factory overhead based on direct labor hours.

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 47,000. The entry to apply the factory overhead costs for the year would include aa. debit to factory overhead for $377,200.b. debit to factory overhead for $360,000.c. credit to factory overhead for $376,000.d. credit to...

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $327,691 and direct labor hours would be 46,813. Actual factory overhead costs incurred were $344,427, and actual direct labor hours were 51,254. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$31,087 underapplied b.$14,351 overapplied c.$14,351 underapplied d.$358,778 overapplied

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $540,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $566,000, and actual direct labor hours were 47,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $344,000 and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $316,200, and actual direct labor hours were 54,400. The entry to apply the factory overhead costs for the year would include a a.debit to Factory Overhead for $316,200 b.credit to Factory Overhead for $344,000 c.credit to Factory Overhead for $415,616 d.debit...

2- A manufacturing company applies factory overhead based on direct labor hours. At the beginning of...

2- A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $282,646 and direct labor hours would be 40,378. Actual factory overhead costs incurred were $358,062, and actual direct labor hours were 53,283. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$14,919 underapplied b.$90,335 underapplied c.$14,919 overapplied d.$372,981 overapplied 3 - Costs that are incurred in generating...

Hamilton company applies manufacturing overhead costs to product based on direct labor hours. the company estimates...

Hamilton company applies manufacturing overhead costs to product based on direct labor hours. the company estimates manufacturing overhead cots for the year to be 280000 and direct labor hours to be 20000. actual overhead and actual direct labor hours for the year were 335000 and 25000 hour respectively required 1. compute over or underapplied overhead 2a. which accounts will be affected by the over- or underapplied manufacturing overhead ? 2b. will the accounts be increased or decreased to abjust for...

12.Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated...

12.Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $700,000, and direct labor costs to be $350,000. Actual overhead costs for the year totaled $710,000, and actual direct labor costs totaled $390,000. At year-end, the balance in the Factory Overhead account is a: 18. Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 94,000...

Savannah Factory applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor...

Savannah Factory applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows: Estimated Actual Overhead cost $174,000 $171,100 Direct labor hours 5,800 5,900 Direct labor cost $87,000 $89,975 How much overhead should be applied in total during August? A. $179,950 B. $174,000 C. $177,000 D. $171,100 The manufacturing operations of Saltic Enterprises had the following balances for the month of March: March 1, 2013 March 31, 2013 Raw Materials $11,000 $14,000 Work in...

Damone Inc. applies overhead to production at a predetermined rate of 80% based on direct labor...

Damone Inc. applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $7,400. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $32,000?

Subjects