ABC Company calculates its predetermined overhead rate. The company budgets overhead costs for the year at...
ABC Company calculates its predetermined overhead rate. The company budgets overhead costs for the year at $500,000 and determines that direct labor hours (expected to be 50,000 in total) is a reasonable cost driver. What is ABC Company's predetermined overhead rate? $25 $5 $10 $0.10
Homework Answers
| Predetermined overhead rate= | ||||||
| estimated overhead/Estimated direct labor hours | ||||||
| 500,000/50,000 | ||||||
| 10 | ||||||
| Answer | $10 | per hour | ||||
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ABC Company calculates its predetermined overhead rate. The
company budgets overhead costs for the year at...
Rochester Heating Systems, Inc. calculates its predetermined overhead rate on a quarterly basis. The following estimates...
Rochester Heating Systems, Inc. calculates its predetermined overhead rate on a quarterly basis. The following estimates were made for the current year Quarterly Predetermined Overhead Estimated Estimated Rate (per Manufacturing Direct-Labor direct-labor Hours 25,000 16,000 Overhead hour) First quarter 75,000 Second 96,000 quarter Third quarter 37,500 Fourth 12,500 84,000 14,000 quarter Total $292,500 67,500 The firm's main product, part number SC71, requires $200 of direct material and 20 hours of direct labor per unit. The labor rate is $15 per...
Urbana Company calculates its predetermined manufacturing overhead rates using normal capacity, which is 288,000 units. The...
Urbana Company calculates its predetermined manufacturing overhead rates using normal capacity, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Manufacturing overhead is applied using direct labor hours. The total budgeted manufacturing overhead is $3,168,000, of which $864,000 is fixed manufacturing overhead. The actual results for the year are as follows. 5. The company's variable manufacturing overhead efficiency (quantity) variance is: $24,000 F. (b) $40,000 U. $40,000 F. $24,000 U. (a) URBANA COMPANY...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1] Harris Fabrics computes its plantwide predetermined overhead rate...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1] Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $123.900 and its...
Henkes Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year....
Henkes Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 75,000 labor hours. The estimated variable manufacturing overhead was $10.70 per labor-hour and the estimated total fixed manufacturing overhead was $1.237.500. The actual labor-hours for the year turned out to be 78,100 labor hours. Required: Compute the company's predetermined overhead rate for the recently completed...
Compute the Predetermined Overhead Rate [LO3] Harris Fabrics computes its predetermined overhead rate annually on the...
Compute the Predetermined Overhead Rate [LO3] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134,000 and the total direct labor would be 20,000 hours. Its actual total manufacturing overhead for the year was $123,900 and its actual total direct labor was 21,000 hours. Required: Compute the company's predetermined overhead rate for the year.
ABC Company estimates $500,000 in total manufacturing overhead costs for the year. The company used direct...
ABC Company estimates $500,000 in total manufacturing overhead costs for the year. The company used direct labor hours as the cost allocation base, and estimates a total of 20,000 direct labor hours for the year. a) Calculate the estimated rate of Manufacturing Overhead allocation in the Before stage. b) 3,200 direct labor hours were used in Job ID #86 during the year. Calculate the manufacturing overhead for this job in the During stage. c) The company allocated $500,000 of manufacturing...
Managerial Accounting - predetermined overhead ABC Company uses a job-order costing system and a predetermined overhead...
Managerial Accounting - predetermined overhead
ABC Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated the followings: $ Factory overhead Machine hours 50,000 8,000 The following information pertains to December of the current year: Work-in-Process, December 1 Materials requisitioned Direct labor cost Actual machine hours Job 101 Job 201 $ 6,000 $ 2,500 $ $ 1,200 $ 800 $ $ 1,000 $ 400 $ 300...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 45,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $590,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $855,906 and its...
Exercise 2-1 Compute a Predetermined Overhead Rate (LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate...
Exercise 2-1 Compute a Predetermined Overhead Rate (LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 32.000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $544,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $737,750 and its...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 41,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $533,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $734,550 and its...
Rochester Heating Systems, Inc. calculates its predetermined overhead rate on a quarterly basis. The following estimates were made for the current year Quarterly Predetermined Overhead Estimated Estimated Rate (per Manufacturing Direct-Labor direct-labor Hours 25,000 16,000 Overhead hour) First quarter 75,000 Second 96,000 quarter Third quarter 37,500 Fourth 12,500 84,000 14,000 quarter Total $292,500 67,500 The firm's main product, part number SC71, requires $200 of direct material and 20 hours of direct labor per unit. The labor rate is $15 per...
Urbana Company calculates its predetermined manufacturing overhead rates using normal capacity, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Manufacturing overhead is applied using direct labor hours. The total budgeted manufacturing overhead is $3,168,000, of which $864,000 is fixed manufacturing overhead. The actual results for the year are as follows. 5. The company's variable manufacturing overhead efficiency (quantity) variance is: $24,000 F. (b) $40,000 U. $40,000 F. $24,000 U. (a) URBANA COMPANY...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1] Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $123.900 and its...
Henkes Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 75,000 labor hours. The estimated variable manufacturing overhead was $10.70 per labor-hour and the estimated total fixed manufacturing overhead was $1.237.500. The actual labor-hours for the year turned out to be 78,100 labor hours. Required: Compute the company's predetermined overhead rate for the recently completed...
Compute the Predetermined Overhead Rate [LO3] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134,000 and the total direct labor would be 20,000 hours. Its actual total manufacturing overhead for the year was $123,900 and its actual total direct labor was 21,000 hours. Required: Compute the company's predetermined overhead rate for the year.
Managerial Accounting - predetermined overhead
ABC Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated the followings: $ Factory overhead Machine hours 50,000 8,000 The following information pertains to December of the current year: Work-in-Process, December 1 Materials requisitioned Direct labor cost Actual machine hours Job 101 Job 201 $ 6,000 $ 2,500 $ $ 1,200 $ 800 $ $ 1,000 $ 400 $ 300...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 45,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $590,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $855,906 and its...
Exercise 2-1 Compute a Predetermined Overhead Rate (LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 32.000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $544,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $737,750 and its...
Exercise 2-1 Compute a Predetermined Overhead Rate [LO2-1) Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 41,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $533,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $734,550 and its...
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