Question

O Smith Foundry in Padelphia, Pennsylvania, es a predetermined manufacturing overhead rate to locatie overhead to individuals based on the machine hours required the beginning of the year. The company expected to Inow the following Tack the icon to view the cou) Read the Requirement 1. ComputeSmith's predetermined manufacturing overhead rate Smith's predetermined manufacturing overhead rate is per machine how Requirement 2. How much manufacturing overhead was allocated to jobs during the year? The amount of manufacturing overhead allocated to jobs during the years Requirement. How much manufacturing overhead was incurred during the year? is manufacturing overhead under overalocated at end of the year? By how much The amount of manufacturing overhead incurred during the year was Manufacturing over Requirement 4 Were the jobs overcosted or undercosted By how much?

Answer 1

Requirement 1: Smith Predeten muined manufa $ 8 Per machine hour. nufacturing overhead rate is Note: Pre determined manufacturing Ollerhead rate Estimated manufacturing overhead Cost = $570000 Estimated machine hours 591250 hours Es Himated manufacturing ove shea al cost Estimated machine hour $ S 700 - $8 ben machine hour Predetermined manufacturing overhead Yate = $8 ber machine how v. fequirement 2: The amount of manufacturing overhead alo cated to Jobs during the year is $ 436 000 סעב וב Note 2: 54 500 hours Actual machine hours incurred - Pre determined manufacturing overhead Rate I see note 11 Manufacturing overhead allocated: Actual machine hours x Pre deteumined incurred manufacturing $8 ben machine hour oven head Route 54500 X $8 - $ 436 000 Amount of marufacturing ovelhead allocated to Job during the # 436000 Year is Requirement 3: The amount of manufacturing overhead incurred during the Year was $ 524500 Manufacturing overhead was by $91500 Under allocated

Note 3: Amount of manufacturing over head inu med during the Year Depreciation on manufacturing $490 000 Plant and Equipment Property taxes on plant $21500 $16000 Oveu head incurred $527500 plant Janitor's wages Manufacturing Monufoeturing atenebated overhead allocated : Manufacturing overbead manufacturing - Manufacturing $ 436000 Un aley allocated Oveu head ovelhead incurred allocated $527500 - $ 436000 $91500 manufacturing over head ; $91500 Under allocated Manufacturing Overhead voder allocated is the situation in which the Actual manufacturing over head ious red exceeds the allocated manufacturing Over head.

Requirement 4: Jobs were Undey Costed by $9.500 Note : Jubs were under Costed by $91500 (by the under allo wted manufacturing overhead) no ho