The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.
Please show work. Thank you Group Problem 2 Predetermined Overhead Rate; Application of Overhead; Gersey Inc.,...
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Demo Problem 1 Predetermined Overhead Rate; Application of Overhead; Peyton's Place, LLC makes neck braces for ailing quarterbacks. All of these neck braces are hand sewn and machine embroidered with their team logo. The firm estimates incurring $650,000 in total overhead in the coming year. Additionally, they expect their annual direct labor hour use to be 125,000 hours and they expect to use 50,000 embroidery machine hours. The firm expects 65% of their total overhead...
Predetermined Overhead Application Rate (POHAR) = Estimated total Annual Overhead Costs/ Estimated total Annual overhead application base. The application the allocation base has traditionally been Direct Labor hours or Machine hours. For example, the formula above can be translated into numbers as $3,000,000/ 300,000 = $10 per Direct labor hour. This formula is interpreted as follows: A product or a service will be charged overhead cost at the rate of $10 for each direct labor hour that the product or...
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1. Compute the predetermined overhead rate for the year.
2.Compute the amount of underapplied or overapllied overhead
for the year.
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production(not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $113,100 of manufacturing overhead for an estimated allocation base of $87000 direct material dollars...
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Group Problem 1 Predetermined Overhead Rate; Application of Overhead; Variances; Journal Entries Harris Company uses a normal job-order costing system. Budgeted overhead for the coming year is $600,000. Expected actual activity is 200,000 direct labor hours. During the year, Harris worked a total of 190,000 direct labor hours and actual overhead totaled $562,000. REQUIRED 1. Compute the predetermined overhead rate for Harris Company. 2. How much overhead will the company assign to the work in...
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Group Problem 3 Predetermined Overhead Rate; Application of Overhead; Peyton's Place, LLC makes neck braces for ailing quarterbacks. All of these neck braces are hand sewn and machine embroidered with their team logo. The firm estimates incurring $650,000 in total overhead in the coming year. Additionally, they expect their annual direct labor hour use to be 125,000 hours and they expect to use 50,000 embroidery machine hours. The firm expects 65% of their total overhead to...
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...
Problem 2-17 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Overhead Application (LO2-1, LO2-2) Wilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours Assembly Fabrication Total $2,210,000 $2,550,000...
Problem 2-17 Plantwide and Departmental Predetermined Overhead Rates; Overhead Application (LO2- 1, LO2-2) Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year--Job Bravo. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours Assembly $ 4,800,000 120,000 48,000...
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Problem 2-19 Multiple Predetermined Overhead Rates; Applying Overhead (LO2-1, LO2-2, LO2-4) High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours. At the...
1 and 2 please
Problem 2-17 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Overhead Application [LO2-1, LO2-2] Wilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours Assembly...