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year? Walsh Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine hours. The Corporation actually worked 105 000 machine-hours and incurred串270 000 n manufacturing overhead costs. By how much wa$ manufacturing overhead underapplied or overapplied for the Select one: a. $2,250 underapplied b. $2,250 overapplied С. $15,000 underapplied d. $15,000 overappliedAt the beginning of December, Walsh Corporation had $26,000 of raw materials on hand. During the month, the Corporation purchased an additional $76,000 of raw materials. During December, $72,000 of raw materials were requisitioned from the storeroom for use in production. The credits entered in the Raw Materials account during the month of December total Select one: a. $102,000 b. $76,000 C.$26,000 d. $72,000 Walsh Corporation has two production departments, Casting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Departments predetermined overhead rate is based on machine-hours and the Finishing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Casting Finishing 17,000 10,000 2,000 5,000 S 105,400 52,000 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour S1.70 Variable manufacturing overhead per direct labor-hour The estimated total manufacturing overhead for the Casting Department is closest to: $ 3.90 Select one: a. $28,900 b. $134,300 c. $105,400 d. $387,260Walsh Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year Raw Materials Bal. 1/1 Debits Bal. 12/31 17,000 Credits 97,000 30,000 Work In Process Bal. 1/1 Direct materials 74,000 Direct labor Overhead applied 257,000 Bal. 12/31 19,000 Credits 506,000 13,000 The cost of indirect materials requisitioned for use in production during the year was: Select one a. $13,000 b. $40,000 C. $10,000 d. $74,000Walsh Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour $2.10 80,000 312,000 Recently, Job T629 was completed with the following characteristics: Number of units in the job Total machine-hours 50 200 The predetermined overhead rate is closest to: Select one: a. $6.00 per machine-hour b, $3.90 per machine-hour c, $8.10 per machine-hour d. $2.10 per machine-hourWalsh Corporation had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.40 per direct labor-hour During May, the following activity was recorded: Raw materials (all direct materials) Beginning balance Purchased during the month Used in production Labor: Direct labor-hours worked during the month Direct labor cost incurred Actual manufacturing overhead costs incurred $ 33,300 Inventories: Raw materials, May 30 Work in process, May 30 $ 8,500 s 38,000 $ 39,300 1,900 $ 24,510 $ 16,937 Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist solely of items that are classified as direct materials The cost of goods manufactured for May was: Select one: a. $100,535 b. $98,770 c. $97,110 d. $110,600Walsh Corporation is using a predetermined overhead rate of $22.30 per machine-hour that was based on estimated total fixed manufacturing overhead of $446,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $409,000 and 18,200 total machine-hours during the period. The amount of manufacturing overheed that would have been applied to all jobs during the period is closest to: Select one a, $405,860 b. $372,190 C. $37,000 d. $446,000 Walsh Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600. The applied manufacturing overhead for the year was closest to: Select one a. $242,006 b. $229,586 C.$234,600 d. $236,854

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Answer #1

Determination of Predetermined Overhead Rate:

Overhead Rate Per Machine Hour = Total Estimated overhead / Estimated Number of Machine Hours

Overhead Rate Per Machine Hour = $255,000 / 100,000

Overhead Rate Per Machine Hour = $2.55 per machine-hour.

Determination of Under or Over Applied Overhead:

Particulars

Amount $

Actual Manufacturing Overhead

270,000

Applied Manufacturing Overhead ( Actual Machine Hours * Machine Hour Rate ) [ 105,000*2.55]

267,750

Under- Applied Overhead

2,250

                                                     

Answer : Under- Applied Overhead is $2,250

So Option 'a' is Correct answer.

[ As HOMEWORKLIB RULES rule answered one question ]

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