ZuoTi.Pro
Question

Liberty Company estimates total overhead costs to be $900,000 and will apply overhead to units produced...

Liberty Company estimates total overhead costs to be $900,000 and will apply overhead to units produced based on 200,000 estimated machine hours. During the year Liberty Company incurred actual overhead costs of $925,000 and achieved 220,000 machine hours. Liberty Company’s predetermined overhead rate is:

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Predetermined overhead rate is: $4.50 per unit

Working

(A) Total Manufacturing Overheads estimated $ 900,000
(B) Total Estimated machine hours 200,000
(A/B) Predetermined Overhead Rate $                 4.50
0 0
Add a comment
Know the answer?
Add Answer to:
Liberty Company estimates total overhead costs to be $900,000 and will apply overhead to units produced...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The Anderson Company estimates that total manufacturing overhead for the year will be $15,000,000 and total...

    The Anderson Company estimates that total manufacturing overhead for the year will be $15,000,000 and total machine hours will be 200,000 hours. However, the actual manufacturing overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is the predetermined overhead rate?

  • 2 points Saved QUESTION 10 The Thomlin Company forecasts that total overhead for the current year...

    2 points Saved QUESTION 10 The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), by how much is the overhead is over/underapplied? $500,000 over $1,000,000...

  • The Kincaid Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate...

    The Kincaid Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate is based on direct labor hours. Estimates for the year just ended are as follows: Estimated Manufacturing Overhead $240,000 Estimated Direct Labor Hours 40,000 At the end of the year, Kincaid Company records revealed the following information: Raw Materials Inventory $35,000 Work-In-Process Inventory 60,000 Finished Goods inventory 105,000 Cost of Goods Sold 400,000 Manufacturing Overhead costs incurred 210,000 Actual Direct Labor Hours 39,000 Required:...

  • Applying Factory Overhead Darling Company estimates that total factory overhead costs will be $243,000 for the...

    Applying Factory Overhead Darling Company estimates that total factory overhead costs will be $243,000 for the year. Direct labor hours are estimated to be 27,000. A. For Darling Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. $ ------per direct labor hour B. During August, Darling Company accumulated 730 hours of direct labor costs on Job 40 and 510 hours on Job 42. Determine the...

  • Applying Factory Overhead Darling Company estimates that total factory overhead costs will be $378,000 for the...

    Applying Factory Overhead Darling Company estimates that total factory overhead costs will be $378,000 for the year. Direct labor hours are estimated to be 27,000. a. For Darling Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. $ per direct labor hour b. During August, Darling Company accumulated 500 hours of direct labor costs on Job 40 and 520 hours on Job 42. Determine the...

  • Martin Company applies manufacturing overhead based on direct machine hours. Martin estimates manufacturing overhead and labor...

    Martin Company applies manufacturing overhead based on direct machine hours. Martin estimates manufacturing overhead and labor for the year follows: Estimated manufacturing overhead $120,000 Direct labor hours estimated 5,000 Estimated direct labor costs $50,000 Estimated machine hours 6,000 Assuming the actual manufacturing overhead cost and the actual activities for Job 201 is as follows: Actual manufacturing overhead $ 12,000 Direct labor hours actual incurred 300 Actual direct labor costs totaled $ 9,800 Actual machine hours totaled 400 Instructions (a) Compute...

  • Applying Factory Overhead Bergan Company estimates that total factory overhead costs will be $620,000 for the...

    Applying Factory Overhead Bergan Company estimates that total factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be 80,000 a. For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. per direct labor hour b. During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305, Determine the amount...

  • Calculator Print Item Applying Factory Overhead Jernigan Company estimates that total factory overhead costs will be...

    Calculator Print Item Applying Factory Overhead Jernigan Company estimates that total factory overhead costs will be $204,000 for the year. Direct labor hours are estimated to be 12,000. a. For Jernigan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. $ per direct labor hour b. During May, Jernigan Company accumulated 580 hours of direct labor costs on Job 200 and 700 hours on Job 305. Determine the amount of factory overhead applied to...

  • Applying Factory Overhead Jernigan Company estimates that total factory overhead costs will be $68,000 for the...

    Applying Factory Overhead Jernigan Company estimates that total factory overhead costs will be $68,000 for the year. Direct labor hours are estimated to be 17,000. a. For Jernigan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. per direct labor hour $ b. During May, Jernigan Company accumulated 720 hours of direct labor costs on Job 200 and 620 hours on Job 305. Determine the...

  • Applying Factory Overhead Darling Company estimates that total factory overhead costs will be $288,000 for the...

    Applying Factory Overhead Darling Company estimates that total factory overhead costs will be $288,000 for the year. Direct labor hours are estimated to be 18,000. a. For Darling Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. per direct labor hour b. During May, Darling Company accumulated 790 hours of direct labor costs on Job 200 and 760 hours on Job 305. Determine the amount...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT