Question

Davidson’s Dolls had the following information in its Work in Process Inventory account for June:

Work in Process Inventory
Beginning balance	10,000	335,000	Transferred out
Materials added	150,000
Labor (5,000 DLHs)	90,000
Applied overhead	120,000
Ending balance	35,000

All workers are paid the same rate per hour. Factory overhead is applied to Work in Process Inventory on the basis of direct labor hours. The only work left in process at the end of the month had a total of 2,860 direct labor hours accumulated to date.
a. What is the total predetermined OH rate per direct labor hour?

Predetermined OH rate

b. If actual total overhead for June is $121,500, what is the amount of underapplied or overapplied overhead?
Note: Do not use a negative sign with your answer.

OverappliedUnderappliedNeither over- or underapplied

c. Record the entry to close out over(under) applied OH directly to Cost of Goods Sold.

Account	Debit	Credit
Cost of Goods SoldFinished Goods InventoryManufacturing OverheadVarious AccountsWork in Process Inventory
Cost of Goods SoldFinished Goods InventoryManufacturing OverheadVarious AccountsWork in Process Inventory

Wyoming Wholesale has gathered the following data on the number of shipments received and the cost of receiving reports for the first seven weeks of the year.

Number of Shipments Received	Weekly Cost of Receiving Reports
50	$175
44	162
40	154
35	142
53	185
58	200
60	202

a. Using the high-low method, develop the equation for predicting weekly receiving report costs based on the number of shipments received.

  y = $Answer + $Answer X

b. What is the predicted amount of receiving report costs for a week in which 72 shipments are received?
Note: Round to the nearest whole dollar.

Budgeted cost of reports

Answer 1

As per HOMEWORKLIB POLICY Quidelines, Only First Question per Post will be answered So Amswering the First Question itself.

Answer:
(a)
Total predetermined OH rate per direct labor hour                = Applied Overhead / Direct labor hours                = $ 120,000 / 5,000 Hrs                =    $ 24 per DLH	$ 24 per DLH
(b)
Amount of underapplied or overapplied overhead                      = Actual (-) Applied                      =   $ 121,500 (-) $ 120,000	$ 1,500 Underapplied
c)
Accounting titles and Explanations	Debit	Credit
Cost of Goods Sold	$ 1,500
Manufacturing (or) Factory Overhead		$ 1,500
(To record the Underapplied Overhead )