Question

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:

a. Calculate the predetermined overhead rate for the year.

b. Determine the amount of overhead applied during the year.

c. Determine the amount of underapplied/overapplied manufacturing overhead for the year.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

a) Predetermine overhead rate = 240000/40000 = 6 per DLH

b) Applied overhead = 39000*6 = 234000

c) Actual manufacturing overhead = 210000

Applied manufacturing overhead = 234000

Over applied overhead = 234000-210000 = 24000

Add a comment
Know the answer?
Add Answer to:
The Kincaid Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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

    The Dewey 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 Estimated direct labor hours $300,000 60,000 During the year Dewey Company used 37,000 direct labor hours. At the end of the year, Dewey Company records revealed the following information: Raw materials inventory Work-in-process inventory Finished goods inventory Cost of goods sold Manufacturing overhead costs incurred $...

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

      The Dewey 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 $300,000 Estimated direct labor hours 60,000 During the year Dewey Company used 37,000 direct labor hours. At the end of the year, Dewey 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...

  • The Sage Company uses a budgeted factory overhead rate to apply manufacturing overhead to production. The...

    The Sage Company uses a budgeted factory overhead rate to apply manufacturing overhead to production. The rate is based on direct labour hours. Estimates for the year 2012 are given below: Estimated manufacturing overhead $540,100 Estimated direct labour hours 49,100 During 2012 the Paine Company used 56,250 direct labour hours. At the end of 2012, the company's records revealed the following information: Raw materials inventory $37,860 Work-in-process inventory 102,560 Finished goods inventory 187,070 Cost of goods sold 667,090 Manufacturing overhead...

  • Osborn Manufacturing uses a predetermined overhead rate of $19.20 per direct labor-hour. This predetermined rate was...

    Osborn Manufacturing uses a predetermined overhead rate of $19.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $249,600 of total manufacturing overhead for an estimated activity level of 13,000 direct labor-hours. The company actually incurred $247,000 of manufacturing overhead and 12,500 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...

  • Osborn Manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was...

    Osborn Manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $259,350 of total manufacturing overhead for an estimated activity level of 13,300 direct labor-hours. The company incurred actual total manufacturing overhead costs of $253,000 and 12,800 total direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. Manufacturing overhead overapplied/underapplied (choose one) by ________. 2. Assuming that the...

  • Osborn Manufacturing uses a predetermined overhead rate of $19.10 per direct labor-hour. This predetermined rate was...

    Osborn Manufacturing uses a predetermined overhead rate of $19.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $246,390 of total manufacturing overhead for an estimated activity level of 12,900 direct labor-hours. The company actually incurred $245,000 of manufacturing overhead and 12,400 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...

  • Osborn Manufacturing uses a predetermined overhead rate of $19.70 per direct labor-hour. This predetermined rate was...

    Osborn Manufacturing uses a predetermined overhead rate of $19.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...

  • Osborn Manufacturing uses a predetermined overhead rate of $18.80 per direct labor-hour. This predetermined rate was...

    Osborn Manufacturing uses a predetermined overhead rate of $18.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $236,880 of total manufacturing overhead for an estimated activity level of 12,600 direct labor-hours. The company actually incurred $233,000 of manufacturing overhead and 12,100 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...

  • Osborn Manufacturing uses a predetermined overhead rate of $19.80 per direct labor-hour. This predetermined rate was...

    Osborn Manufacturing uses a predetermined overhead rate of $19.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $269,280 of total manufacturing overhead for an estimated activity level of 13,600 direct labor-hours. The company actually incurred $265,000 of manufacturing overhead and 13,100 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...

  • Osborn Manufacturing uses a predetermined overhead rate of $18.30 per direct labor-hour. This predetermined rate was...

    Osborn Manufacturing uses a predetermined overhead rate of $18.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $221,430 of total manufacturing overhead for an estimated activity level of 12,100 direct labor-hours. The company actually incurred $217,000 of manufacturing overhead and 11,600 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...

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