When calculating the predetermined manufacturing overhead rate, what is the correct formula? Estimated overhead costs divided...
When calculating the predetermined manufacturing overhead rate, what is the correct formula?
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Estimated overhead costs divided by the number of days in a year |
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Estimated amount of the cost driver divided by the estimated total overhead costs |
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Actual overhead costs of the prior year divided by the actual amount of the cost driver |
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Estimated overhead costs divided by the estimated amount of the cost driver |
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Estimated overhead costs divided by the actual amount of the cost driver |
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Actual overhead costs divided by the estimated amount of the cost driver |
Homework Answers
| Option D is the answer | |
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Predetermined overhead rate = Estimated overhead /Estimated cost driver Cost driver can be direct labor hours or machine hours or direct labor cost |
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When calculating the predetermined manufacturing overhead rate,
what is the correct formula?
Estimated overhead costs divided...
The predetermined overhead rate is determined as: Estimated overhead costs divided by estimated allocation base (eg...
The predetermined overhead rate is determined as: Estimated overhead costs divided by estimated allocation base (eg direct labor hours) Actual overhead cost divided by estimated allocation base (eg direct labor hours) Estimated overhead Costs divided by actual allocation base (eg actual direct labor hours) actual overhead costs divided by actual allocation base (eg actual direct labor hours) Do not cost their services using job costing techniques True O False The beginning in Finished Goods Inventory is $50,000, the ending balance...
Which of the following is the correct formula to compute the predetermined overhead rate? M oe...
Which of the following is the correct formula to compute the predetermined overhead rate? M oe Choice O Estimated total units in the allocation base divided by estimated total manufacturing overhead costs C) Estimated to mancung overhead costs vided by estimated total units in the allocation base 0 Actual total manufacturing overhead costs vided by estimated total units in the allocation base O Estimated total manufacturing overhead costs divided by actual total units in the allocation base
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total manufacturing...
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total manufacturing overhead cost + Estimated total amount of the allocation base True False Thach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours fixed manufacturing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine Number of units in the job Total machine hours Direct materials Direct labor cost $ 2,880 The unit product...
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount...
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount of the allocation base - Estimated total manufacturing overhead cost True or False True False
Estimated total manufacturing overhead costs Actual total manufacturing overhead costs Estimated machine hours Actual machine hours...
Estimated total manufacturing overhead costs Actual total manufacturing overhead costs Estimated machine hours Actual machine hours $750,000 $ 765,000 200,000 hours 198,000 hours Knowledge Check 03 Using the information provided by Amilmar Inc., calculate the predetermined overhead rate. Amilmar has determined machine hours to be the appropriate cost driver to allocate overhead costs. $3.79 $1.02 O $3.75 $3.86 Knowledge Check 04 Amilmar Inc. has provided this information regarding its overhead costs. It has determined machine hours to be the appropriate...
true false 1) The predetermined overhead rate may be based on estimated overhead costs and estimated...
true false 1) The predetermined overhead rate may be based on estimated overhead costs and estimated production volume for the coming year. 2) When scrap is identified with a specific job, the proceeds of its sale should be credited to the manufacturing overhead control account. 3) A cost accounting system furnishes the total actual overhead costs immediately upon completion of each job. 4)The finished goods ledger is subsidiary to the general ledger cost of goods manufactured account.
How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs? A.By...
How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs? A.By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base B.By dividing the total estimated amount of the allocation base by the total estimated manufacturing overhead costs C.By dividing the total estimated manufacturing overhead costs by the total actual amount of the allocation base D.By multiplying the total estimated manufacturing overhead costs by the total estimated amount of...
Osborn Manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was...
Osborn Manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $259,350 of total manufacturing overhead for an estimated activity level of 13,300 direct labor-hours. The company incurred actual total manufacturing overhead costs of $253,000 and 12,800 total direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. Manufacturing overhead overapplied/underapplied (choose one) by ________. 2. Assuming that the...
HOW WOULD I RESPOND TO THESE? - The predetermined overhead rate is based on the relationship...
HOW WOULD I RESPOND TO THESE? - The predetermined overhead rate is based on the relationship between estimated annual overhead costs and estimated annual operating activity, expressed in terms of a common activity base. The company may state the activity in terms of direct labor costs, direct labor hours, machine hours, or any other measure that provides an equitable basis for applying overhead costs to jobs. Companies establish the predetermined overhead rate at the beginning of the year. The formula...
Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs....
Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of August, Karvel estimated total manufacturing overhead costs at £300,000 and total machine-hours at 75,000 hours. Actual results for the period were manufacturing overhead costs of £290,000 and 75,000 machine-hours. As a result, Karvel would have: 1. applied more overhead to Work in Process than the actual amount of overhead cost for the year. 2. applied an amount of overhead to...
The predetermined overhead rate is determined as: Estimated overhead costs divided by estimated allocation base (eg direct labor hours) Actual overhead cost divided by estimated allocation base (eg direct labor hours) Estimated overhead Costs divided by actual allocation base (eg actual direct labor hours) actual overhead costs divided by actual allocation base (eg actual direct labor hours) Do not cost their services using job costing techniques True O False The beginning in Finished Goods Inventory is $50,000, the ending balance...
Which of the following is the correct formula to compute the predetermined overhead rate? M oe Choice O Estimated total units in the allocation base divided by estimated total manufacturing overhead costs C) Estimated to mancung overhead costs vided by estimated total units in the allocation base 0 Actual total manufacturing overhead costs vided by estimated total units in the allocation base O Estimated total manufacturing overhead costs divided by actual total units in the allocation base
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total manufacturing overhead cost + Estimated total amount of the allocation base True False Thach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours fixed manufacturing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine Number of units in the job Total machine hours Direct materials Direct labor cost $ 2,880 The unit product...
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount of the allocation base - Estimated total manufacturing overhead cost True or False True False
Estimated total manufacturing overhead costs Actual total manufacturing overhead costs Estimated machine hours Actual machine hours $750,000 $ 765,000 200,000 hours 198,000 hours Knowledge Check 03 Using the information provided by Amilmar Inc., calculate the predetermined overhead rate. Amilmar has determined machine hours to be the appropriate cost driver to allocate overhead costs. $3.79 $1.02 O $3.75 $3.86 Knowledge Check 04 Amilmar Inc. has provided this information regarding its overhead costs. It has determined machine hours to be the appropriate...
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