Calculate and Use Overhead Rate
Selected data for the consulting department of Austin Consulting, Inc., follow:
Estimated consulting overhead cost for the year | $810,000 |
Estimated direct labor cost for the year (@ $9/hr.) | 450,000 |
Actual manufacturing overhead cost for January | 48,000 |
Actual direct labor cost for January (1,200 hours) | 33,000 |
Assuming that direct labor cost is the basis for applying consulting overhead,
a. Calculate the predetermined overhead rate.
_________%
b. Prepare a journal entry that applies consulting overhead for January.
General Journal | ||
---|---|---|
Description | Debit | Credit |
Answer | Answer | Answer |
Answer | Answer | Answer |
c. By what amount is consulting overhead over- or underapplied in January?
Consulting overhead was ________ by $_______ in January.
Preparing a Job Order Cost Sheet
Riverwood Accounting Company has the following account in its cost records:
Work in Process—Jones Audit | ||||
---|---|---|---|---|
Direct labor | 120,000 | Services completed | 253,518 | |
Project overhead | 162,000 |
Riverwood applies overhead to projects at a predetermined rate based on direct labor costs. Assume that Riverwood uses a job order costing system and that Jones Audit is the only job in process at the end of the period. Complete the following cost sheet for services still in process for Jones Audit.
Job Order Cost Sheet Jones Audit (Services in Process) |
||
---|---|---|
Direct labor | Answer | |
Project overhead | Answer | |
Total cost | Answer |
1a) Predetermine overhead rate = 810000/450000 = 180% of labor cost
b. Prepare a journal entry that applies consulting overhead for January.
General Journal | ||
---|---|---|
Description | Debit | Credit |
Work in process (33000*1.80) | 59400 | |
Consulting overhead | 59400 |
c. By what amount is consulting overhead over- or underapplied in January?
Consulting overhead was Overapplied by (59400-48000) = 11400 in January.
2) Calculate following
Complete the following cost sheet for services still in process for Jones Audit.
Job Order Cost Sheet Jones Audit (Services in Process) |
||
---|---|---|
Direct labor (28482/2.35) | 12120 | |
Project overhead (12120*1.35) | 16362 | |
Total cost | 28482 |
Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow:...
Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year Estimated direct labor cost for the year (@ $9/hr.) Actual manufacturing overhead cost for January Actual direct labor cost for January (1,200 hours) $360,000 180,000 19,500 11,000 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. 0 % b. Prepare a journal entry that applies consulting overhead for...
selected data for the consulting
Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year $297,000 Estimated direct labor cost for the year (@ $9/hr.) 270,000 Actual manufacturing overhead cost for January 17,600 Actual direct labor cost for January (1,200 hours) 12,100 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. b. Prepare a journal entry that applies consulting overhead for January General...
Calculate and Use Overhead Rate Selected data for the consulting department of Kingman Consulting, Inc., follow: Estimated consulting overhead cost for the year $1,215,000 Estimated direct labor cost for the year (@ $9/hr.) 810,000 Actual manufacturing overhead cost for May 78,000 Actual direct labor cost forMay (2,400 hours) 66,000 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. Answer% b. Prepare a journal entry that applies consulting overhead for May. General...
QUESTION 1 Not complete Marked out of 9.00 Flag question Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow. Estimated consulting overhead cost for the year $594,000 Estimated direct labor cost for the year( $9/hr.) 270,000 Actual manufacturing overhead cost for January35,200 Actual direct labor cost for January (1,200 hours) 24,200 Assuming that direct labor cost is the basis for applying consulting overhead a. Calculate the predetermined overhead rate. b. Prepare a journal...
Exercise A: Calculate and Use Overhead Rate Selected data for the consulting department of Kingman Consulting, Inc., follow: $405,000 Estimated consulting overhead cost for the year Estimated direct labor cost for the year (@ $9 per hour) Actual manufacturing overhead cost for May Actual direct labor for May (2,400 hours) $324,000 $26,000 $22,000 Assume that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. b. Calculate the applied overhead for May. c. By...
Preparing a Job Order Cost Sheet Riverwood Accounting Company has the following account in its cost records: Work in Process—Jones Audit Direct labor 20,000 Services completed 42,253 Project overhead 27,000 Riverwood applies overhead to projects at a predetermined rate based on direct labor costs. Assume that Riverwood uses a job order costing system and that Jones Audit is the only job in process at the end of the period. Complete the following cost sheet for services stil l in process...
Question 3 Partially correct Mark 1.67 out of 3.00 P Flag question Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year $405.000 Estimated direct labor cost for the year (@ $9/hr.) 450,000 Actual manufacturing overhead cost for January 24,000 Actual direct labor cost for January (1,200 hours) 16,500 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate....
Preparing a job Order Cost Sheet Riverwood Accounting Company has the following account in its cost records Work in Process Jones Audit Direct labor 100.000 Services completed 211265 Proceed 135.000 Riverwood applies overhead to projects at a predetermined rate based on direct labor costs. Assume of the period Complete the following cost sheet for services in process for ones Audit Job Order Cone Sheet Jones Audit Services in Process em and that ones Audit is the only job in process...
Determine and Use Overhead Rate Cortez Consulting, Inc., expects the following costs and expenses during the coming year: Direct labor (@ $22.50/hr.) $81,000 Sales commissions 18,500 Overhead 72,000 a. Compute a predetermined overhead rate applied on the basis of direct labor hours. Round to two decimal places, if applicable. $Answer: b. Prepare a general journal entry to apply overhead during an interim period when 750 direct labor hours were worked. General Journal Description Debit Credit Answer Choices:Consulting overhead/Cost of goods...
Question 48 16 pts Jones Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of 2019. Jones estimated the overhead for the year would be $680,000 and that production would use 80,000 machine hours. The following information relates to the month of January: Job A Job B Job C $8,000 $11,000 Work in process, January 1 Direct materials cost $0 $12,000 $18,000 $1,900 $21,000 $29,000 $6,000 Direct labor costs Actual direct...