Question
In: Accounting
Calculating Manufacturing Overhead Rates Windsor Company, accumulated the following data for 2017: Milling Department manufacturing overhead...
Calculating Manufacturing Overhead Rates
Windsor Company, accumulated the following data for 2017:
| Milling Department manufacturing overhead | $187,200 |
| Finishing Department manufacturing overhead | $76,800 |
| Machine hours used | |
| Milling Department | 9,000 hours |
| Finishing Department | 2,000 hours |
| Labor hours used | |
| Milling Department | 1,000 hours |
| Finishing Department | 1,000 hours |
Required
a. Calculate the plantwide manufacturing overhead rate using
machine hours as the allocation base.
$Answer
per machine hour
b. Calculate the plantwide manufacturing overhead rate using direct
labor hours as the allocation base.
$Answer per direct labor hour
c. Calculate department overhead rates using machine hours in
Milling and direct labor hours in Finishing as the allocation
bases.
$Answer per Milling Dept. machine hour
$Answer per Finishing Dept. direct labor hour
d. Calculate department overhead rates using direct labor hours in
Milling and machine hours in Finishing as the allocation
bases.
$Answer per Milling Dept. direct labor hour
$Answer per Finishing Dept. machine hour
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates Assume that
manufacturing overhead for Goldratt Company consisted of the
following activities and costs:
Setup (1,000 setup hours) $118,000
Production scheduling (400 batches) 30,000
Production engineering (60 change orders) 90,000
Supervision (2,000 direct labor hours)
64,000 Machine maintenance (12,000 machine hours)
84,000 Total activity costs $386,000
The following additional data were provided for Job 845: Direct
materials costs $7,000 Direct labor cost (5 Milling direct labor
hours;35 Finishing direct labor hours) $1,000 Setup hours 5...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates
Assume that manufacturing overhead for Goldratt Company consisted
of the following activities and costs:
Setup (1,000 setup hours)
$150,000
Production scheduling (400 batches)
80,000
Production engineering (60 change orders)
60,000
Supervision (2,000 direct labor hours)
66,000
Machine maintenance (12,000 machine hours)
48,000
Total activity costs
$404,000
The following additional data were provided for Job 845:
Direct materials costs
$7,000
Direct labor cost (5 Milling direct labor hours;35 Finishing
direct labor hours)
$1,000
Setup hours
5...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates
Assume that manufacturing overhead for Goldratt Company consisted
of the following activities and costs:
Setup (1,000 setup hours)
$150,000
Production scheduling (400 batches)
80,000
Production engineering (60 change orders)
60,000
Supervision (2,000 direct labor hours)
66,000
Machine maintenance (12,000 machine hours)
48,000
Total activity costs
$404,000
The following additional data were provided for Job 845:
Direct materials costs
$7,000
Direct labor cost (5 Milling direct labor hours;35 Finishing
direct labor hours)
$1,000
Setup hours
5...
Assume that manufacturing overhead for Windsor Company consisted of the following activities and costs: Setup (1,000...
Assume that manufacturing overhead for Windsor Company consisted
of the following activities and costs:
Setup (1,000 setup hours)
$ 92,000
Production scheduling (300 batches)
24,000
Production engineering (70 change orders)
70,000
Supervision (2,200 direct labor hours)
66,000
Machine maintenance (13,000 machine hours)
78,000
Total activity costs
$ 330,000
The following additional data were provided for Job 845:
Direct material costs
$ 6,000
Direct labor cost (5 Milling direct labor hours; 25 Finishing
direct labor hours)
$ 1,000
Setup hours
5...
Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following....
Atlanta Company is preparing its
manufacturing overhead budget for 2017. Relevant data consist of
the following.
Units to be produced (by quarters):
10,000, 12,000, 14,000, 16,000.
Direct labor quantity standard is
1.5 direct labor hours per unit.
Variable overhead costs per direct
labor hour total to $2.50.
Fixed overhead costs per quarter
total to $62,000
Instructions
a. Prepare the manufacturing overhead budget for 2017 by
quarters.
b.What is the pre-determined FOH rate based on direct labor
hours?
c. How much...
tlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following....
tlanta Company is preparing its manufacturing overhead budget
for 2017. Relevant data consist of the following. Units to be
produced (by quarters): 10,000, 12,000, 14,000, 16,000. Direct
labor: Time is 1.5 hours per unit. Variable overhead costs per
direct labor hour: indirect materials $0.80; indirect labor $1.20;
and maintenance $0.50. Fixed overhead costs per quarter:
supervisory salaries $35,000; depreciation $15,000; and maintenance
$12,000. Prepare the manufacturing overhead budget for the year,
showing quarterly data
Exercise 23-11 Condensed financial data of Windsor Company for 2017 and 2016 are presented below. WINDSOR...
Exercise 23-11
Condensed financial data of Windsor Company for 2017 and 2016
are presented below.
WINDSOR COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
2017
2016
Cash
$1,780
$1,140
Receivables
1,760
1,310
Inventory
1,570
1,900
Plant assets
1,890
1,720
Accumulated depreciation
(1,190
)
(1,150
)
Long-term investments (held-to-maturity)
1,280
1,410
$7,090
$6,330
Accounts payable
$1,220
$890
Accrued liabilities
210
250
Bonds payable
1,430
1,540
Common stock
1,940
1,730
Retained earnings
2,290
1,920
$7,090
$6,330
WINDSOR COMPANY
INCOME...
The Collins Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead...
The Collins Company uses predetermined overhead rates to
apply manufacturing overhead to jobs. The predetermined overhead
rate is based on labor costs in Dept. A and machine hours in Dept.
B. at the beginning of the year, the company made the following
estimates:
Dept.
A Dept.
B
Direct Labor cost…………………………
$65,000
$42,000
Manufacturing
overhead…………………$91,000
$48,000
Direct Labor-hours………………………8,000
hours 10,000 hours
Machine-hours………………………… 3,000
hours 12,000 hours
What is the predetermined overhead rate for department A?
What is the predetermined overhead rate...
The Watts Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead...
The Watts Company uses predetermined overhead rates to apply
manufacturing overhead to jobs. The predetermined overhead rate is
based on labour cost in Department A and on machine hours in
Department B. At the beginning of the year, the company made the
following estimates: Department A Department B Direct labour cost
$30,000 $40,000 Manufacturing overhead $60,000 $50,000 Direct
labour hours 6,000 8,000 Machine hours 2,000 10,000 What
predetermined overhead rates would be used in Departments A and B,
respectively? Multiple...
KLM Company listed the following data for 2017: Budgeted factory overhead  
KLM Company listed the following data
for 2017:
Budgeted factory
overhead
$2,015,800
Actual factory
overhead
2,125,900
Budgeted direct labor
hours
195,000
Budgeted machine
hours
86,875
Actual machine
hours
91,500
Actual direct labor
hours
189,600
(a) Assuming KLM applied overhead based on direct labor hours;
calculate the company's predetermined overhead rate for 2017
(b) Assuming KLM applied overhead based on machine hours; calculate
the company's predetermined overhead rate...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Course Name: Professional Communication Required: Make a good presentation TOPIC: Corona Virus has impacted the entire...
- What is REAL worship? How important is "worship" to "faith"? What are the differences between a...
- What is the CIDR notation corresponding to a subnet mask of 255.240.0.0? Please show work.
- Case Study: Can Amazon Trim the Fat at Whole Foods? WHEN FOUR YOUNG entrepreneurs opened a...
- Do college students enjoy playing sports more than watching sports? A researcher randomly selected ten college...
- In javascript, make a program that takes in a positive integer (entered on a textbox and...
- Explain the essence of Earned Value for projects in your context as a key input for...
ADVERTISEMENT