Question
In: Accounting
Cadburn Corp. uses a job order costing system with manufacturing overhead applied to products on the...
Cadburn Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Cadburn Corp. estimated total manufacturing overhead cost at $250,000 and total direct labor hours of 50,000. During the year actual manufacturing overhead incurred was $262,500 and 51,000 direct labor hours were used.
a. Calculate the predetermined overhead rate.
b. Calculate how much manufacturing overhead will be applied to production.
c. Is overhead over- or underapplied? By how much?
d. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Deer Lake Inc. uses a job order costing system with manufacturing overhead applied to products at...
Deer Lake Inc. uses a job order costing system with
manufacturing overhead applied to products at a rate of 150% of
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missing amounts (Input all amounts as positive
values.):
Case 1
Case 2
Case 3
Direct materials used
$20,600
$10,000
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$26,800
Manufacturing overhead applied
$44,100
Total manufacturing costs
$97,000
$30,000
Beginning Work in Process
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Job Order Costing: Wadadli Products uses a job-order costing
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machine-hours. At the beginning of the year, management estimated
that 170,000 machine-hours would be required for the periods
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variable manufacturing overhead of $1.50 per machine hour.
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Assume that during the year of...
Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of...
Curtis Inc. uses a job order costing system. Manufacturing
overhead is applied on the basis of direct labor cost. Total
manufacturing overhead was estimated to be $60,680 for the year;
direct labor was estimated to total $151,700.
Raw Materials Inventory
(1/1) $ 10,700
(12/31) $ 13,700
Work in Process Inventory
(1/1) $ 23,900
(12/31) $ 18,500
Finished Goods Inventory
(1/1) $ 34,100
(12/31) $ 40,000
The following transactions have occurred during the year.
Raw materials purchases $ 107,000
Direct materials...
Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of...
Ecola Company uses a job order costing system. Manufacturing
overhead is applied on the basis of direct labor cost. Total
manufacturing overhead was estimated to be $142,560 for the year;
direct labor was estimated to total $162,000.
(1/1)
(12/31)
Raw Materials Inventory
$
13,800
$
10,800
Work in Process Inventory
$
29,800
$
22,800
Finished Goods Inventory
$
41,800
$
32,800
The following transactions have occurred during the year.
Raw materials purchases
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138,000
Direct materials used
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Direct...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with
manufacturing overhead applied to products on the basis of direct
labor dollars. At the beginning of the most recent period, the
company estimated its total direct labor cost to be $51,700 and its
total manufacturing overhead cost to be $98,230.
Several incomplete general ledger accounts show the transactions
that occurred during the most recent accounting period which is
given in second requirement.
Required:
2. Fill in the missing values in...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with
manufacturing overhead applied to products on the basis of direct
labor dollars. At the beginning of the most recent period, the
company estimated its total direct labor cost to be $54,800 and its
total manufacturing overhead cost to be $98,640.
Several incomplete general ledger accounts show the transactions
that occurred during the most recent accounting period which is
given in second requirement.
Required:
1. Calculate the predetermined overhead rate.
2....
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with
manufacturing overhead applied to products on the basis of direct
labor dollars. At the beginning of the most recent period, the
company estimated its total direct labor cost to be $50,300 and its
total manufacturing overhead cost to be $90,540.
Several incomplete general ledger
accounts showing the transactions that occurred during the most
recent accounting period follow:
Required:
1.
Calculate the predetermined overhead rate.
2.
Fill in...
Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis...
Medusa Products uses a job-order costing system. Overhead costs
are applied to jobs on the basis of machine-hours. At the beginning
of the year, management estimated that the company would work
88,800 machine-hours and incur $346,320 in manufacturing overhead
costs for the year.
Required:
1. Compute the company's predetermined overhead rate.
(Round your answer to 2 decimal places.)
Predetermined overhead rate
...............................
Per MH
2. Assume that during the year the company actually worked only
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Verizox Company uses a job order cost system with manufacturing overhead applied to products based on...
Verizox Company uses a job order cost system with manufacturing
overhead applied to products based on direct labor hours. At the
beginning of the most recent year, the company estimated its
manufacturing overhead cost at $172,040. Estimated direct labor
cost was $456,280 for 18,700 hours.
Actual costs for the most recent month are summarized
here:
Item Description
Total Cost
Direct labor
(1,870 hours)
$
45,629
Indirect
costs
Indirect
labor
2,520
Indirect
materials
3,380
Factory
rent
3,340
Factory
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Factory...
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on...
Verizox Company uses a job order cost system with manufacturing
overhead applied to products based on direct labor hours. At the
beginning of the most recent year, the company estimated its
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Actual costs for the most recent month are summarized
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Item Description
Total Cost
Direct labor (1,840 hours)
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Indirect costs
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2,450
Indirect materials
3,500
Factory rent
3,270
Factory supervision
4,890
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