Answer 1 | ||||||||||
Amount of overhead applied to work in process for the year = Actual machine hours worked during the year * Overhead application rate | ||||||||||
Amount of overhead applied to work in process for the year = 75000 hours * $2.40 per machine hour = $1,80,000 | ||||||||||
Entry in T-accounts | ||||||||||
Work in process | Answer 2B | |||||||||
Direct Materials | $710,000.00 | Journal entry to close company's underapplied overheads to cost of goods sold | ||||||||
Direct Labor | $90,000.00 | Account Titles | Debit | Credit | ||||||
Overheads | $180,000.00 | Cost of Goods sold | $4,000.00 | |||||||
Manufacturing Overheads | $4,000.00 | |||||||||
Answer 2A | ||||||||||
Underapplied or overapplied overheads = Actual overheads incurred - Applied Overheads | ||||||||||
Underapplied overheads = $184000 - $180000 = $4000 | ||||||||||
Manufacturing Overheads | ||||||||||
Maintenance | $21,000.00 | Work in process | $180,000.00 | |||||||
Indirect Materials | $8,000.00 | |||||||||
Indirect Labor | $60,000.00 | |||||||||
Utilities | $32,000.00 | |||||||||
Insurance | $7,000.00 | |||||||||
Depreciation | $56,000.00 | |||||||||
Balance | -$4,000.00 | |||||||||
Updates N Sane updane Help S Exercise 3-9 Applying Overhead; T-accounts; Journal Entries [LO3-1, LO3-2, LO3-4...
Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (LO3-1, LO3-2, LO3-4) Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine hours. The company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $237,500 of total manufacturing overhead for an estimated activity level of 95,000 machine-hours. Required: 1. Assume that during the year the company works only 90,000 machine-hours and incurs the following costs in the Manufacturing...
Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (LO3-1, LO3-2, LO3-4) Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $202,500 of total manufacturing overhead for an estimated activity level of 81,000 machine-hours. Required: 1. Assume that during the year the company works only 76,000 machine-hours and incurs the following costs in the Manufacturing Overhead...
Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (L03-1, LO3-2, LO3-4] Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.60 per machine-hour was based on a cost formula that estimates $260,000 of total manufacturing overhead for an estimated activity level of 100,000 machine-hours. Required: 1. Assume that during the year the company works only 95,000 machine-hours and incurs the following costs in the Manufacturing Overhead...
Exercise 3-9 Applying Overhead; T-accounts; Journal Entries [L03-1, LO3-2, LO3-4] Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.60 per machine-hour was based on a cost formula that estimates $257,400 of total manufacturing overhead for an estimated activity level of 99,000 machine-hours. Required 1. Assume that during the year the company works only 94,000 machine-hours and incurs the following costs in the Manufacturing Overhead...
Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (LO3-1, LO3-2, L03-4) Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.90 per machine-hour was based on a cost formula that estimates $246,500 of total manufacturing overhead for an estimated activity level of 85,000 machine-hours. Required: 1. Assume that during the year the company works only 80,000 machine-hours and incurs the following costs in the Manufacturing Overhead...
Exercise 3-9 (Algo) Applying Overhead; T-accounts; Journal Entries [LO3-1, LO3-2, LO3-4] Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.70 per machine-hour was based on a cost formula that estimates $243,000 of total manufacturing overhead for an estimated activity level of 90,000 machine-hours. Required: 1. Assume that during the year the company works only 85,000 machine-hours and incurs the following costs in the Manufacturing...
Help Save & Ext Sub Check my work Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (LO3-1, LO3-2, L03-4) Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.60 per machine-hour was based on a cost formula that estimates $213.200 of total manufacturing overhead for an estimated activity level of 82,000 machine-hours. Required: 1. Assume that during the year the company works only 77,000 machine-hours and...
Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (LO3-1, L03-2, LO3-4) Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $242,500 of total manufacturing overhead for an estimated activity level of 97,000 machine-hours. Required: 1. Assume that during the year the company works only 92,000 machine-hours and incurs the following costs in the Manufacturing Overhead...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.80 per machine-hour was based on a cost formula that estimates $232,400 of total manufacturing overhead for an estimated activity level of 83,000 machine-hours. Required: 1. Assume that during the year the company works only 78,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.30 per machine-hour was based on a cost formula that estimates $225,400 of total manufacturing overhead for an estimated activity level of 98,000 machine-hours. Required: 1. Assume that during the year the company works only 93,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead...